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    socialight Posts: 5, Reputation: 1
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    Dec 4, 2007, 09:57 AM
    common shares and dividends
    I need to journalize the following:
    2/5 The board of directors reduced par of common shares form $100.00 to $20.00.This action increased the number of outstanding shares to 400,000

    2/22 Declared dividend of $1.00 per share on the outstanding shares of common stock

    3/2 paid the dividend declared on 2/22

    4/1 declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be isued is $60.

    5/1 issued the certificates for the common stock dividend declared on 4/1


    I have 2/5 treasury stock of 8000000 dr
    cash 8000000 cr
    2/22 cash dividend 400000 dr
    cash dividend payable 4000000cr
    3/2 cash dividend payable 400000dr
    cash 400000cr
    but from there I am lost I don't even know if I am correct on the previous answers?

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