Textbook Problem

Selected dividend transactions, stock split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

  Jan. 8.    Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there were 300,000 common shares outstanding.

  Apr. 30.    Declared semiannual dividends of $0.60 per share on 16,000 shares of preferred stock and $0.22 per share on the common stock payable on July 1.

  July 1.    Paid the cash dividends.

  Oct 31.    Declared semiannual dividends of $0.60 per share on the preferred stock and $0.11 per share on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $56.

  Dec 31.    Paid the cash dividends and issued the certificates for the common stock dividend.

  Journalize the transactions.