On January 1, 2017, Tara Corporation issued 60,000 shares of common stock of $1 par value and
Question:
On January 1, 2017, Tara Corporation issued 60,000 shares of common stock of $1 par value and
outstanding. The following transactions took place during the year:
March 15 Issued 40,000 common shares for $400,000.
May 24 Declared a cash dividend of $1.50 per share to shareholders of record on June 15.
June 30 Paid cash dividend of $1.50 per share.
December 15 Declared a cash dividend of $1.00 per share to shareholders of record on December 31.
December 20 Declared a 10% stock dividend to shareholders of record on December 31, 2016,
distributable on January 20, 2017. The market value of the shares was $12 per share on January 20, 2017.
December 20 and $14 per share on December 31.
Required:
Journalize past Tara Corporation transactions, including the distribution of the stock dividend.
on January 20, 2018.
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach