CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed

Question:

CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed the following transactions:

Apr. 15 Declared a semiannual dividend of $0.65 per share on preferred stock and $0.45 per share on common stock to shareholders of record on May 5, payable on May 10.

Currently, 6,000 shares of $50 par preferred stock and 70,000 shares of $1 par common stock are outstanding.

May 10 Paid the cash dividends.

Oct. 15 Declared semiannual dividend of $0.65 per share on preferred stock and $0.45 per share on common stock to shareholders of record on November 5, payable on

November 20.

Nov. 20 Paid the cash dividends.

22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at $15 per share.

Dec. 16 Issued certificates for common stock dividend.

20 Board of directors declared a two-for-one common stock split.

REQUIRED

Prepare journal entries for the transactions.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...