Journalizing dividends and treasury stock transactions and preparing the stockholders’ equity...

Question

Journalizing dividends and treasury stock transactions and preparing the stockholders’ equity section of the balance sheet
Halborn Manufacturing Co. completed the following transactions during 2018:

Record the transactions in Halborn’s general journal.
Prepare the Halborn’s stockholders’ equity section of the balance sheet as of December 31, 2018. Assume that Halborn was authorized to issue 2,200 shares of preferred stock and 500,000 shares of common stock. Both preferred stock and Common stock, were issued, at par. The ending balance of retained earnings as of December 31, 2018, is $2,030,000.

Extracted text: Declared a cash dividend on the 6%, $97 par noncumulative preferred
stock (1,150 shares outstanding). Declared a $0.20 per share dividend on
the 80,000 shares of $8 par value common stock outstanding. The date of
record is January 31, and the payment date is February 15.
Jan. 16
Feb. 15 Paid the cash dividends.
Jun. 10 Split common stock 2-for-1.
Jul. 30 Declared a 40% stock dividend on the common stock. The market value
of the common stock was $8 per share.
Aug. 15 Distributed the stock dividend.
Oct. 26 Purchased 8,000 shares of treasury stock at $9 per share.
Nov. 8
Sold 4,000 shares of treasury stock for $10 per share.
30
Sold 1,400 shares of treasury stock for $5 per share.

Khushboo · Accepted Answer

Sheet1
		Journal entries
		Date	Particulars	Debit	Credit
		Jan.16	Dividend - preferred stock	6,693
			Dividend - common stock	16,000
			Dividend payable		22,693
			(To record declaration of cash dividend)
		Feb.15	Dividend payable	22,693
			Cash		22,693
			(To record payment of dividend)
		Jun.10	No Journal entry
		Jul.30	Stock dividend	512,

Journalizing dividends and treasury stock transactions and preparing the stockholders’ equity section of the balance sheet Halborn Manufacturing Co. completed the following transactions during 2018:...

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