Prepare journal entries for ABC Co.’s following events.
05/12/08 Received charter authorizing ABC Co. to issue 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 the law firm of Lo, Ball and Hyde 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.
12/15/08 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.