Journalize the following selected transactions completed during the current fiscal year:DateTransactionFebruary 1The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.February 11Purchased 25,000 shares of the company's own stock at $44, recording the treasury stock at cost.May 1Declared a dividend of $2.50 per share on the outstanding shares of common stock.May 15Paid the dividend declared on May 1.October 19Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55).November 12Issued the certificates for the common stock dividend declared on October 19. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

A stock split is a corporate action where a company increases the number of outstanding shares,…

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ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 9SPA

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Journalize the following selected transactions completed during the current fiscal year:

Date	Transaction
February 1	The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.
February 11	Purchased 25,000 shares of the company's own stock at $44, recording the treasury stock at cost.
May 1	Declared a dividend of $2.50 per share on the outstanding shares of common stock.
May 15	Paid the dividend declared on May 1.
October 19	Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55).
November 12	Issued the certificates for the common stock dividend declared on October 19.