BE 236
On February 1, Burchess Corporation issued 5,000 shares of its $20 par value preferred stock for $24 per share.
Instructions
Journalize the transaction.
BE 237
On November 27, the board of directors of Henderson Company declared a $.40 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Henderson has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates.
BE 238
On October 10, the board of directors of Pitcher Corporation declared a 10% stock dividend. On October 10, the company had 10,000 shares of $1 par common stock issued and outstanding with a market price of $15 per share. The stock dividend will be distributed on October 31 to shareholders of record on October 25. Journalize the entries needed for the declaration and distribution of the stock dividend.
BE 239
Devons Company has 24,000 shares of $1 par common stock issued and outstanding. The company also has 2,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2010 or 2011. What amount of dividends must the company pay the preferred shareholders in 2012 if they wish to pay the common stockholders a dividend?
BE 240
On November 1, 2011, Neely Corporation’s stockholders’ equity section is as follows:
Common stock, $10 par value$600,000
Paid-in capital in excess of par value180,000
Retained earnings 200,000
Total stockholders’ equity$980,000
On November 1, Neely declares and distributes a 15% stock dividend when the market value of the stock is $14 per share.
Instructions
Indicate the balances in the stockholders’ equity accounts after the stock dividend has been distributed.