The stockholders' equity section of Heatherly Corporation's balance sheet as of December 31, 2021 is as follows: Common Stock, $5 par value; 500,000 shares issued and outstanding $ 2,500,000 Paid-in Capital in Excess of Par—Common Stock 500,000 Preferred Stock, 4%, $50 par, cumulative, 50,000 shares issued and outstanding 2,500,000 Paid-in Capital in Excess of Par—Preferred Stock 1,250,000 Part A: record the journal entries for the events that occurred on the following dates during 2022. Jan 5 Issued 400 shares of common stock in exchange for equipment with a fair value of $5,000. Jan 6 Issued 5,000 shares of preferred stock for $75 per share. Feb 15 Issued 15,000 shares of common stock for $8 per share. March 10 Issued 5,000 shares of common stock and 1,000 shares of preferred stock for a lump sum of $115,000. The March 10 market price of the common stock is $9 per share and the preferred stock is $80 per share. June 1 A 5% common stock dividend was declared. Fair value per share is currently $10. The shares will be distributed on June 20 to stockholders of record on June 10. June 10 Date of record for stock dividend. June 20 Distributed shares from the stock dividend declared on June 1. July 1 Acquired 10,000 of its own common stock at $10 per share. July 31 Reissued 2,000 shares of the treasury stock at $13 per share. Aug 15 Reissued the remaining 8,000 shares of the treasury stock at $8 per share. Sept 1 A 75% common stock dividend was declared. Fair value is currently $11 per share. The shares will be distributed on September 20 to stockholders of record on September 10. Sept 10 Date of record for stock dividend. Sept 20 Distributed shares from the stock dividend declared on September 1. Oct 1 A cash dividend of $500,000 was declared, payable October 31 to stockholders of record October 15. No dividends were paid during fiscal years 2020 and 2021. Record the common dividend payable and the preferred dividend payable in separate accounts. Oct 15 Date of record for cash dividend. Oct 31 Paid cash dividend declared on October 1. Nov 30 A two-for-one split of common stock was carried out. Fair value on November 30 was $7 per share.
The
follows:
Common Stock, $5 par value; 500,000 shares issued and outstanding $ 2,500,000
Paid-in Capital in Excess of Par—Common Stock 500,000
Paid-in Capital in Excess of Par—Preferred Stock 1,250,000
Part A: record the
dates during 2022.
Jan 5 Issued 400 shares of common stock in exchange for equipment with a fair value of $5,000.
Jan 6 Issued 5,000 shares of preferred stock for $75 per share.
Feb 15 Issued 15,000 shares of common stock for $8 per share.
March 10 Issued 5,000 shares of common stock and 1,000 shares of preferred stock for a lump sum of
$115,000. The March 10 market price of the common stock is $9 per share and the preferred
stock is $80 per share.
June 1 A 5% common stock dividend was declared. Fair value per share is currently $10. The shares
will be distributed on June 20 to stockholders of record on June 10.
June 10 Date of record for stock dividend.
June 20 Distributed shares from the stock dividend declared on June 1.
July 1 Acquired 10,000 of its own common stock at $10 per share.
July 31 Reissued 2,000 shares of the
Aug 15 Reissued the remaining 8,000 shares of the treasury stock at $8 per share.
Sept 1 A 75% common stock dividend was declared. Fair value is currently $11 per share. The shares
will be distributed on September 20 to stockholders of record on September 10.
Sept 10 Date of record for stock dividend.
Sept 20 Distributed shares from the stock dividend declared on September 1.
Oct 1 A cash dividend of $500,000 was declared, payable October 31 to stockholders of record October
15. No dividends were paid during fiscal years 2020 and 2021. Record the common dividend
payable and the preferred dividend payable in separate accounts.
Oct 15 Date of record for cash dividend.
Oct 31 Paid cash dividend declared on October 1.
Nov 30 A two-for-one split of common stock was carried out. Fair value on November 30 was $7 per
share.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
