Prepare journal entries (debit and credit or no entry) for
Question and Solution
Prepare journal entries (debit and credit or no entry) for the following events of a company 05/12/08 Received charter authorizing issuing of 10,000 shares of common stock at a par value of $3 per share. 06/03/08 Issued 6,000 shares of stock, receiving $42,000. 06/04/08 Paid a law firm for their services to help organize the company by sending them one thousand shares of stock. 11/15/08 Declared a cash dividend of $2 per share, payable on 01/15/09, to holders of record as of 12/15/08. 12/14/08 Make the appropriate entry. 12/31/08 Make any necessary adjusting entry. 01/15/09 Make the appropriate entry. 06/12/09 Declared a ten percent (10%) stock dividend, payable on 7/15/09 (ignore the date of record for this event). The market value of the stock is $12 per share. 07/15/09 Make the appropriate entry. 08/15/09 Declared a two-for-one stock split. The market value of the stock is $14 per share. 09/15/09 Declared and paid a cash dividend of $2 per share (pretend this happens all in one day). 10/01/09 Purchased 1,000 shares of treasury stock for a total price of $20,000. 10/15/09 Declared and paid a cash dividend of $2 per share. 11/15/09 Reissued 300 shares of treasury stock at $21 each. 12/15/09 Reissued the remaining treasury stock at $10 per share.