Various Dividends The Goodson Company listed the following account balances on December 31, 2006:
|
Investment in Xurk Company bonds |
$25,000 |
|
Dividends payable: preferred |
4,000 |
|
Dividends payable: common |
40,000 |
|
Preferred stock, 8%, $100 par |
100,000 |
|
Common stock, $10 par |
$400,000 |
|
Additional paid in capital on preferred stock |
20,000 |
|
Additional paid in capital on common stock |
210,000 |
|
Retained earnings |
270,000 |
During 2007, the following transactions occurred:
Feb. 2 Paid the semiannual dividends declared on December 15, 2006.
Mar. 5 Declared a property dividend, payable to common stockholders on April 5 in Xurk Company bonds being held to maturity. The bonds (which have a book value of $25,000) have a current market value of $31,000.
Apr. 5 Paid the property dividend.
July 6 Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17.
Aug. 17 Paid the cash dividends.
Oct. 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
Dec. 3 Issued the stock dividend.
Dec. 28 Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2008.
Required
Prepare journal entries to record the preceding transactions.