Dearborn Manufacturing, Co., completed the following transactions during 2012: Jan 16 Declared a cash dividend on the

Question:

Dearborn Manufacturing, Co., completed the following transactions during 2012:
Jan 16 Declared a cash on the 6%, $95 par preferred stock (1,000 shares outstanding). Declared a $0.55 per share on the 90,000 shares of outstanding. The date of record is January 31, and the payment due date is February 15.
Feb 15 Paid the cash dividends.
Jun 10 Split 2 for 1. Before the split, Dearborn had 90,000 shares of $10 par outstanding.
Jul 30 Distributed a 30% stock on the . The market value of the was $12 per share.
Oct 6 Purchased 3,000 shares of treasury stock at $10 per share.
Nov 8 Sold 1,500 shares of treasury stock for $11 per share.
Nov 30 Sold 700 shares of treasury stock for $7 per share.
Requirement
1. Record the transactions in Dearborn’s general journal.

Common Stock
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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...