Question

Instructions Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Jan. 5. Mar 10. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,170,000 common shares outstanding. Purchased 39,000 shares of the corporation's own common stock at $28, recording the stock at cost. Declared semiannual dividends of $0.85 on 72,300 shares of preferred stock and $0 10 on the common stock to stockholders of record on May 15, payable on June 15 Apr. 30. June 15. 20. 15 Oct. Paid the cash dividends Sold 29,300 shares of treasury stock at $35, receiving cash. Declared semiannual dividends of $0.85 on the preferred stock and $0.10 on the common stock (before the stock dividend). In addition, a 4% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $37. The dividend date of record is November 15 payable on December 19. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 19. Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles

Answer 1

Date	Description	Debit	Credit
5-Jan	Journal Entry not required. A Memo will be passed/issued by the company representing 390000 Common Equity Shares having Par value @ $75/share Splits in the Ratio of 1:3 to 1170000 Shares having Par value @ $25/share
10-Mar	Share Capital A/c	975000
	Premium Paid A/c	117000
	To Share Holder's A/c		1092000
	(Being 39000 shares purchased @ 28/share at a premium of $3/share)
30-Apr	Interim Dividend A/c	61455
	To General Reserve A/c		61455
	(Being Interim Dividend declared @ $0.85/share for 72300 Preference Shares)
30-Apr	Interim Dividend A/c	117000
	To General Reserve A/c		117000
	(Being Interim Dividend declared @ $0.10/share for 1170000 Common Shares)
15-May	General Reserve A/c	61455
	To Share Holder's A/c		61455
	(Being Interim Dividend payable @ $0.85/share for 72300 Preference Shares)
15-May	General Reserve A/c	117000
	To Share Holder's A/c		117000
	(Being Interim Dividend payable @ $0.10/share for 1170000 Common Shares)
15-Jun	Share Holder's A/c	61455
	To Cash/Bank A/c		61455
	(Being Interim Dividend paid @ $0.85/share for 72300 Preference Shares)
15-Jun	Share Holder's A/c	117000
	To Cash/Bank A/c		117000
	(Being Interim Dividend paid @ $0.10/share for 1170000 Common Shares)
20-Aug	Cash/Bank A/c (29300*35)	1025500
	To Share Capital A/c		732500
	To Paid in capital from Treasury Stock A/c		293000
	(Sold 29300 Shares @ $35/share)
15-Oct	Interim Dividend A/c	61455
	To General Reserve A/c		61455
	(Being Interim Dividend declared @ $0.85/share for 72300 Preference Shares)
15-Oct	Interim Dividend A/c	114070
	To General Reserve A/c		114070
	(Being Interim Dividend declared @ $0.10/share for 1140700 Common Shares{1170000-29300 Sold})
	1140700
15-Oct	Final Dividend A/c	4562800
	To General Reserve A/c		4562800
	(Being Final Dividend declared @ $4/share for 1140700 Common Shares)
15-Nov	General Reserve A/c	61455
	To Share Holder's A/c		61455
	(Being Interim Dividend payable @ $0.85/share for 72300 Preference Shares)
15-Nov	General Reserve A/c	114070
	To Share Holder's A/c		114070
	(Being Interim Dividend payable @ $0.10/share for 1140700 Common Shares)
15-Nov	General Reserve A/c	4562800
	To Share Holder's A/c		4562800
	(Being Final Dividend payable @ $4/share for 1140700 Common Shares)
19-Dec	Share Holder's A/c	61455
	To Cash/Bank A/c		61455
	(Being Interim Dividend paid @ $0.85/share for 72300 Preference Shares)
19-Dec	Share Holder's A/c	114070
	To Cash/Bank A/c		114070
	(Being Interim Dividend paid @ $0.10/share for 1140700 Common Shares)
19-Dec	Share Holder's A/c	4562800
	To Cash/Bank A/c		4562800
	(Being Final Dividend paid @ $4/share for 1140700 Common Shares)