Question

Learom Manufacturing Co., completed the following transactions during 2012. Record the transactions in Deancom general journal Jan 16 Feb 15 Jun 10 Declared a $0.55 per share dividend on the 90.000 shares of common stock outstanding 90,000 shares of common stock outstanding The date of record is January 31, and the payment due date is February 15 Paid the cash dividends Split common stock 2 for 1. Before the split, Dearborn had 90,000 shares of $10 par common stock outstanding Purchased 3.000 Purchased 3,000 shares of treasury stock at $10 per share Sold 1,500 shares of treasury stock for $10 per share Oct 26 Nov 8

Answer 1

Date	Accounts & Explanation	Debit	Credit
Jan.16	Retained Earnings	$49,500
	Dividends Payable—Common ($0.55 * 90000 shares)		$49,500
Feb.15	Dividends Payable—Common	$49,500
	Cash		$49,500
Jun.10	No Entry
	(Common stock split 2-for-1)
Oct.26	Treasury Stock—Common ($10 * 3000 shares)	$30,000
	Cash		$30,000
	(Treasury stock purchased)
Nov.08	Cash ($10 * 1500 shares)	$15,000
	Treasury Stock—Common		$15,000