Journalizing dividends and treasury stock transactions and preparing the stockholders’ equity section of the balance sheetHalborn 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. Declared a cash dividend on the 6%, $97 par noncumulative preferredstock (1,150 shares outstanding). Declared a $0.20 per share dividend onthe 80,000 shares of $8 par value common stock outstanding. The date ofrecord is January 31, and the payment date is February 15.Jan. 16Feb. 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 valueof 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. 8Sold 4,000 shares of treasury stock for $10 per share.30Sold 1,400 shares of treasury stock for $5 per share.

Answered: Declared a cash dividend on the 6%, $97…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 13E

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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.

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.

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