129) EverClean Corporation reported the following shareholders' equity on January 1, 2010:
Contributed capital
Preferred shares, $2.50, cumulative, 30,000
shares authorized, 7,500 shares issued $ 393,750
Common shares, 200,000 shares
authorized, 135,000 shares issued 607,500
Total contributed capital1,001,250
Retained earnings 218,500
Total shareholders' equity$1,219,750
a) On June 15, 2010, the board of directors declared a 10% common stock dividend when the market price of the shares was $7.00 per share. On July 15, 2010, the stock dividend was distributed to the shareholders. Prepare the necessary journal entries to record the declaration and distribution of the common stock dividend.
b) What effect did the declaration of the common stock dividend have on:
1) total assets
2) total liabilities
3) total contributed capital
4) total shareholders' equity
General Journal
|
Date |
Accounts |
Debit |
Credit |
130) Sampson Corporation reports the following transactions for 2010:
Jan. 10Sold 5,000 shares of $4.50, noncumulative, preferred shares for $85 per share.
Feb. 19Sold 3,000 common shares for $12 per share.
Oct. 12Declared a 15% stock dividend on the common shares. The current
market price of the common shares is $15 per share. Sampson
Corporation has 100,000 common shares outstanding on October 12.
Nov. 15Distributed the stock dividend declared on October 12.
Dec. 15Declared the annual dividend required on the preferred shares and a
$0.50 per share dividend on the common shares. Sampson Corporation
currently has 20,000 preferred shares outstanding.
Prepare journal entries for the above transactions.
