Give journal entries, if required, for the following transactions pertaining to Grable:
a. Grable declares the regular quarterly dividend of $1.50 per share on its $100 par value preferred stock. There are 30,000 shares authorized and 15,000 shares issued, of which Grable has previously reacquired 2,000 shares and holds them as treasury shares.
b. Grable pays the dividend on the preferred stock (see part a).
c. Grable declares and issues a stock dividend of $300,000 of no-par common stock to its common shareholders.
d. The shares of no-par stock of Grable sell on the market for $200 a share. To bring the market value down to a more popular price and thereby broaden the distribution of its stockholdings, Grable’s board of directors votes to issue four extra shares to shareholders for each share they already hold. Grable issues the shares.

  • CreatedMarch 04, 2014
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