Question

Various Dividends Carlyon Company listed the following items in its December 31, 2015, financial statements:
Investment in Man Company bonds ..... $25,000
Dividends payable: preferred ........ 4,000
Dividends payable: common ......... 40130
Preferred stock, 8%, $100 par ........ 100,000
Common stock, $10 par .......... 400,000
Additional paid-in capital on preferred stock .. 20,000
Additional paid-in capital on common stock: .. 210,000
Retained earnings ............. 270,000
During 2016, the following transactions occurred:
Feb. 2 Paid the semiannual dividends declared on December 15, 2015.
Mar. 5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $25,000) have a current market value of $31,000.
Apr. 5 Paid the property dividend.
July 6 Declared a $4 per share semiannual cash dividend on preferred stock and a $ 1.10 per share semiannual dividend on common stock, to be paid on August 17.
Aug. 1 7 Paid the cash dividends.
Oct. 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
Dec. 3 Issued the stock dividend.
28 Declared a $4 and $ 1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017.
Required:
Prepare journal entries to record the preceding transactions.


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  • CreatedOctober 05, 2015
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