LilPanPan
Mar 25, 2009, 02:49 PM
I having difficulty understanding how to complete a Journal Entry dealing with Stocks and Dividends.
My homework question is as shown below:
Make a Journal Entry if need:
January 1 Bought 500,000 shares (2% of outstanding stock) of Common Stock of Baltimore Corporation for a price of $ 16 per share.
June 30 Sold 100,000 shares of Baltimore Corporation for $ 17 per share.
Oct 15 Baltimore Corporation had a 2 for 1 Stock Split on its outstanding shares. Chad Corporation now owns 800,000 shares of Baltimore Corporation.
Dec 20 Received a cash dividend of $1 per share from Baltimore Corporation.
Dec 31 Made adjusting entry to adjust to markey, the market value per share is $ 10.
I need some guidence in trying to complete this problem. I also need help in understanding Stock and Dividends.
My homework question is as shown below:
Make a Journal Entry if need:
January 1 Bought 500,000 shares (2% of outstanding stock) of Common Stock of Baltimore Corporation for a price of $ 16 per share.
June 30 Sold 100,000 shares of Baltimore Corporation for $ 17 per share.
Oct 15 Baltimore Corporation had a 2 for 1 Stock Split on its outstanding shares. Chad Corporation now owns 800,000 shares of Baltimore Corporation.
Dec 20 Received a cash dividend of $1 per share from Baltimore Corporation.
Dec 31 Made adjusting entry to adjust to markey, the market value per share is $ 10.
I need some guidence in trying to complete this problem. I also need help in understanding Stock and Dividends.