Question

ructions ected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Jan. 8. Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 157,000 common shares outstanding. Apr. Declared semiannual dividends of $0.65 on 19,000 shares of preferred stock and $0.24 on the common 30 stock payable on July 1. Paid the cash dividends. Jul. Oct Declared semiannual dividends of $0.65 on the preferred stock and $0.11 on the common stock (before 31 the stock dividend), In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. Dec. Paid the cash dividends and issued the certificates for the common stock dividend. 31

Answer 1

Date	General Journal	Debit	Credit
Jan 8	No Journal Entry
	No Journal Entry
Apr. 30	Cash Dividends	50,030
	Cash Dividends Payable		50,030
	($0.65 x 19,000 + $0.24 x 157,000)
	(To record declaration of dividends)
July 1	Cash Dividends Payable	50,030
	Cash		50,030
	(To record payment of dividends)
Oct 31	Cash Dividends	29,620
	Cash Dividends Payable		29,620
	($0.65 x 19,000 + $0.11 x 157,000)
	(To record declaration of dividends)
Oct 31	Stock Dividends	244,920
	Common Stock Dividends Distributable		188,400	(4,710 x $40)
	Paid in Capital in excess of Par - Common Stock		56,520	Balance
	(157,000 x 3% x $52)
Dec 31	Cash Dividends Payable	29,620
	Cash		29,620
	(To record payment of dividends)
	Common Stock Dividends Distributable	188,400
	Common Stock		188,400