1- The stockholders' equity section of Jay Company's balance sheet on 2009 December 31, shows 100,000 shares of authorized and issued USD 20 stated value common stock, of which 9,000 shares are held in the treasury. On this date, the board of directors declared a cash dividend of USD 2 per share payable on 2010 January 21, to stockholders of record on January 10. Give dated journal entries for these.
2- Grant Corporation's stockholders' equity consisted of 60,000 authorized shares of USD 30 par value common stock, of which 30,000 shares had been issued at par, and retained earnings of USD 750,000. The company then split its stock, two for one, by changing the par value of the old shares and issuing new USD 15 par shares. a. Give the required journal entry to record the stock split. b. Suppose instead that the company declared and later issued a 10 percent stock dividend. Give the required journal entries, assuming that the market value on the date of declaration was USD 40 per share.
3- The stockholders' equity of Acorn Company as of 2010 December 31, consisted of 20,000 shares of authorized, issued, and outstanding USD 50 par value common stock, paid-in capital in excess of par of USD 240,000, and retained earnings of USD 400,000. Following are selected transactions for 2011:
May 1 Acquired 3,000 shares of its own common stock at USD 100 per share.
June 1 Reissued 500 shares at USD 120.
June 30 Reissued 700 shares at USD 90.
Oct. 1 Declared a cash dividend of USD 5 per share.
October 31 Paid the cash dividend declared on October 1.
Net income for the year was USD 80,000. No other transactions affecting retained earnings occurred during the year.
a. Prepare general journal entries for these transactions.
b. Prepare the stockholders' equity section of the 2009 December 31, balance sheet.