Selected transactions completed by Kearny Boating Corporation during the current fiscal year are as follows:
Jan. 8. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 600,000 common shares outstanding.
Feb. 13 Purchased 30,000 shares of the corporation’s own common stock at $27, recording the stock at cost.
May 1 Declared semiannual dividends of $0.80 on 25,000 shares of preferred stock and $0.18 on the common stock to stockholders of record on May 15, payable on June 1.
June 1 Paid the cash dividends.
Aug. 5 Sold 22,000 shares of treasury stock at $34, receiving cash.
Nov. 15 Declared semiannual dividends of $0.80 on the preferred stock and $0.20 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $40.
Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.
Instructions
Journalize the transactions.