View the step-by-step solution to: PR 13-5A Entries for selected corporate transactions Selected

This question was answered on May 06, 2011. View the Answer
PR 13-5A
Entries for selected corporate transactions
Selected transactions completed by Oceano Boating Corporation during the current fiscal year are as follows:
Jan. 3. Split the common stock 2 for 1 and reduced the par from $50 to $25 per share. After the split, there were 400,000 common shares outstanding.
Feb. 20. Purchased 50,000 shares of the corporation’s own common stock at $32, recording the stock at cost.
May 1. Declared semiannual dividends of $0.80 on 30,000 shares of preferred stock and $0.14 on the common stock to stockholders of record on May 15, payable on June 1.
June 1. Paid the cash dividends.
Aug. 5. Sold 42,000 shares of treasury stock at $39, receiving cash.
Nov. 15. Declared semiannual dividends of $0.80 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $40.
Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.
Instructions
Journalize the transactions.
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PFA solution. [In case, if any... View the full answer

7124330.xls

Oceano Boating Corporation
Journal Entries
Date

Account Titles/Description

Debits

Credits

3-Jan No Journal entry required for stock split. But a note is required stating the ratio of split
and...

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