Question

Assignment Instructions: Mustang Inc. completed the following stock-related transactions during 2016. Record the transactions In Mustang's general journal on the "Worksheet" tab. (second picture)

Assignment Instructions: Mustang Inc. completed the following stock-related transactions during 2016. Record the transactions In Mustang's general journal on the "Worksheet" tab. Upload your file in Blackboard when you are finished. Mustang declared a $30,000 cash dividend. The company currently has 2,000 shares of 896, $125 par value cumulative preferred stock outstanding. The company did not pay any dividends in 2015. The company also has 80,000 shares of $1 par value common stock. Jan. 25, 2016 Feb. 15, 2016 Mustang paid the cash dividends. July 5, 2016 The common stock split 2:1 August 2, 2016 Declared and immediately distributed a 10% stock dividend on the common stock. The market value at the time of the stock dividend was $21 per share. Oct. 10, 2016 Purchased 1,500 shares of treasury stock for $19 a share. Oct. 31, 2016 Sold 750 shares of the treasury stock for $22 a share Nov. 22,2016 Sold the remaining shares of treasury stock for $15 a share.

Answer 1

Journal Entries
Date	Account Title and explanation	Debit Amt in Million	Credit Amount in million
Jan 25 , 2016	Retained Earnings	$                  30,000
	To Dividend Payable		$                     30,000
	(Diclare a cash dividend)
Feb 15, 2016	Dividend Payable	$                  30,000
	To Cash		$                     30,000
	(Dividend Paid )
July 05, 2016	There is no Journal Entry is required for This.
	Note: Only Par Value of the common stock is reduced from $ 1 to $ 0.50
	and number of Shares are increase from 100,000 shares to 200,000 shares
August 02. 2016	Retained Earning (20,000 Shares X $ 21)	$               4,20,000
	To Stock Dividend Distributable		$                 4,20,000
	(Declared stock Dividend)
	No. of Shares issued = 200,000 shares X 10% = 20,000 shares
August 02. 2016	Stock Dividend Distrutable	$               4,20,000
	To Common Stock (200,000 Shares X $ 0.50)		$                 1,00,000
	To Addittional Paid in Capital - Common Stock		$                 3,20,000
	(Dirstribute the stock Dividend)
Oct, 10 2016	Treasury Stock (1500*$ 19)	$                  28,500
	To Cash		$                     28,500
	(Purhcase of the treasury Stock)
Oct, 31 2016	Cash (750 Shares X $ 22)	$                  16,500
	To Treasury Stock (750 Share X $ 19)		$                     14,250
	To Addittional Paid in capital - Treasury Stock (Bal.)		$                       2,250
	(Sold Treasury Stock)
Nov, 22 2016	Cash (750 X $ 15)	$                  11,250
	Addittional Paid in capital - Treasury Stock	$                     2,250
	Retained Earning (Balance)	$                        750
	To Treasury Stock		$                     14,250
	(Sold Treasury Stock)