Reference no: EM132724715
On January 1, 2018, Thomson Inc. had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 250,000 shares issued of
which 5,000 Shares being held as treasury stock $250,000
Paid-in capital excess of par, common 500,000
Preferred stock, $100 par, 10,000 shares outstanding 1,000,000
Paid-in capital excess of par, preferred 100,000
Retained earnings 2,000,000
Treasury stock, at cost, 5,000 shares 25,000
During 2018, Thomson Inc. had several transactions relating to common stock.
1/15 Declared a property dividend, payable in bonds of Goodings Corp. being held to maturity. The book value of the bond is $28,000 but the current market value is $34,000.
2/17 Distributed the property dividend.
3/20 Reissued 1,000 shares of treasury stock at $7 per share.
4/17 Declared a 2 for 1 stock split on common stock effective 4/24.
7/18 Declared and distributed a 4% stock dividend on outstanding common stock; market value per share, $7.
11/1 Declared a ten cents per share cash dividend on the outstanding common shares.
11/26 Ex-dividend date for the cash dividend.
11/27 Date of record for the cash dividend.
12/15 Paid the cash dividend declared on 11/1.
Required:
Problem 1: Record the transactions and events in the journal entry format.