Reference no: EM132462821

Problem - On December 31, 2015, Alpha had the following balances (all balances are normal):

Accounts - Amount

Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) - $1,000,000

Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) - $1,000,000

The following events occurred during 2015 and were not recorded:

a. On January 1, Alpha declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.

b. Stock dividends were distributed on January 31 to shareholders as of January 25.

c. On February 15, Alpha reacquired 1,000 shares of common stock for $20 each.

d. On March 31, Alpha reissued 250 shares of treasury stock for $25 each.

e. On July 1, Alpha reissued 500 shares of treasury stock for $16 each.

f. On October 1, Alpha declared full year dividends for preferred stock (see outstanding shares in table above).

g. Then, paid preferred shareholders on October 15

h. On October 1, Alpha also declared $1.50 cash dividends per share for the 104,750 remaining common outstanding shares.

i. Then, paid common shareholders on October 15.

Required - Prepare journal entries for the transactions listed above. Note: there may be more rows in the table than the journal entries that are required.