Preparation of journal for various transactions in corporate accounting.
On 12/31/07, Rich Corporation had the following in the Stockholders' Equity section on the Balance Sheet:
|
8% Preferred stock, $100 par value, cumulative,
|
|
10,000 shares authorized, 7,000 shares issued and outstanding
|
$700,000
|
|
Common Stock, $10 par value, 500,000 shares authorized;
|
|
|
250,000 shares issued and outstanding
|
2,500,000
|
|
Additional paid-in capital-preferred
|
100,000
|
|
Additional paid-in capital-common
|
1,000,000
|
|
Retained Earnings
|
5,000,000
|
|
Total shareholders' Equity
|
$9,300,000
|
Prepare the journal entries for the following 2008 transactions. Place your answers below the rest of these questions.
|
Feb. 1
|
Issued 50,000 shares of $10 par value common stock for $750,000
|
|
April 15
|
Purchased 4,000 shares of treasury stock for $80,000
|
|
May 12
|
Sold 1,000 shares of treasury stock for $24,000
|
|
June 6
|
Sold the remaining 3,000 shares of treasury stock for $32,000
|
|
June 30
|
Declared dividends of $620,000, payable on 7/28/08 to owners of record on 7/14/08.
|
|
July 14
|
Date of record
|
|
July 28
|
Payment date
|
|
Sept. 15
|
Declared a 10% stock dividend (to common stock holders). The market price on 9/15 was $21 to be distributed on 10/15.
|
|
Oct. 15
|
Distributed the stock dividend.
|