Journalizing stockholders’ equity transactions
Summerborn Manufacturing, Co., completed the following transactions during 2012:
|
Jan |
16 |
Declared a cash dividend on the 5%, $100 par preferred stock (900 shares outstanding). Declared a $0.30 per share dividend on the 80,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is February 15. |
|
Feb |
15 |
Paid the cash dividends. |
|
Jun |
10 |
Split common stock 2 for 1. Before the split, Summerborn had 80,000 shares of $6 par common stock outstanding. |
|
Jul |
30 |
Distributed a 50% stock dividend on the common stock. The market value of the common stock was $9 per share. |
|
Oct |
26 |
Purchased 1,000 shares of treasury stock at $13 per share. |
|
Nov |
8 |
Sold 500 shares of treasury stock for $15 per share. |
|
Nov |
30 |
Sold 300 shares of treasury stock for $8 per share. |
Requirement
1.Record the transactions in Summerborn’s general journal.