Question: Prepare journal entries (debit and credit or no entry) for the following events of a company 05/12/08 Received charter authorizing issuing of 10,000 shares of

Prepare journal entries (debit and credit or no entry) for the following events of a company 05/12/08 Received charter authorizing issuing of 10,000 shares of common stock at a par value of $3 per share. 
06/03/08 Issued 6,000 shares of stock, receiving $42,000.  06/04/08 Paid a law firm for their services to help organize the company by sending them one thousand shares of stock. 11/15/08 Declared a cash dividend of $2 per share, payable on 01/15/09, to holders of record as of 12/15/08.  12/14/08 Make the appropriate entry.  12/31/08 Make any necessary adjusting entry.  01/15/09 Make the appropriate entry.  06/12/09 Declared a ten percent (10%) stock dividend, payable on 7/15/09 (ignore the date of record for this event). The market value of the stock is $12 per share.  07/15/09 Make the appropriate entry.  08/15/09 Declared a two-for-one stock split. The market value of the stock is $14 per share.  09/15/09 Declared and paid a cash dividend of $2 per share (pretend this happens all in one day).  10/01/09 Purchased 1,000 shares of treasury stock for a total price of $20,000.  10/15/09 Declared and paid a cash dividend of $2 per share.  11/15/09 Reissued 300 shares of treasury stock at $21 each.  12/15/09 Reissued the remaining treasury stock at $10 per share.

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Computation of Journal Entries Journal Entries of ABC Company Date Particulars Debit Credit 051208 There would be no journal entry On this day no tran... View full answer

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