As of January 2, 2020, The Seeplus Company had the following items in its capital structure:...

  

Transcribed Image Text:

As of January 2, 2020, The Seeplus Company had the following items in its capital structure: o Preferred stock, 6%, $5 par value, 100,000 shares authorized, 80,000 shares issued, 60,000 shares outstanding, convertible into 42,000 shares of common stock. o Common stock, $4 stated value, 40,000 shares authorized, 25,000 shares issued, 6,000 shares in the treasury. o Retained earnings of $612,000. On August 1, 2020, Seeplus's governing board declared a 15% common stock dividend, for holders of record at September 1, 2020, when the market value of the common stock was $7 per share and the market value of the preferred stock was $9 per share. When the dividend was distributed on October 1, 2020, 30% of the dividend was issued in the form of fractional-share stock rights. On December 31, 2020, Seeplus was notified by its stock transfer agent that 60% of the fractional-share stock rights had been exchanged for common stock, and the remaining fractional-share stock rights had expired. Provide all the journal entries necessary for The Seeplus Company's stock dividend. As of January 2, 2020, The Seeplus Company had the following items in its capital structure: o Preferred stock, 6%, $5 par value, 100,000 shares authorized, 80,000 shares issued, 60,000 shares outstanding, convertible into 42,000 shares of common stock. o Common stock, $4 stated value, 40,000 shares authorized, 25,000 shares issued, 6,000 shares in the treasury. o Retained earnings of $612,000. On August 1, 2020, Seeplus's governing board declared a 15% common stock dividend, for holders of record at September 1, 2020, when the market value of the common stock was $7 per share and the market value of the preferred stock was $9 per share. When the dividend was distributed on October 1, 2020, 30% of the dividend was issued in the form of fractional-share stock rights. On December 31, 2020, Seeplus was notified by its stock transfer agent that 60% of the fractional-share stock rights had been exchanged for common stock, and the remaining fractional-share stock rights had expired. Provide all the journal entries necessary for The Seeplus Company's stock dividend.