Business Finance Homework Help

The Davis Corporation is authorized to issue 3,000 shares of 8%, $50 par value preferred stock and 10,000 shares of no-par value common stock with a stated value of $20 per share. On December 31, 2018, 1,000 shares of preferred stock and 3,000 shares of common stock are issued and outstanding.

The corporation’s transactions affecting stockholders’ equity during 2019 are given below. Record the transactions on page 8 of the general journal. Omit explanations.

January 15 Repurchased 300 shares of outstanding preferred stock for $37,500 in cash. The stock is to be held as treasury stock.

March 1 Declared a 2-for-1 stock split of common stock. Each shareholder is to receive one new share for each share held. Record the entry for the date of record on March 15 and for the issuance of the stock on April 1.

July 15 Declared a cash dividend of 8% on preferred stock and $.25 per share on common stock to be paid on August 1 to stockholders of record on July 31.

August 1 Paid the cash dividend declared on July 15.

October 5 Accepted title to a tract of land with a fair market value of $15,000 from the city of Fairview. The land is to be used as a building site for a new warehouse.

November 8 The Board of Directors appropriated $40,000 of retained earnings for the construction of a new warehouse.

December 15 Declared a stock dividend (payable January 15, 2020) to common stockholders of record on December 28, at the rate of one new share of common stock for each ten shares held. The estimated market value of the common stock is $12 per share.