Corponation Case Study

Buena Vida Inc. is a packaging items wholesaler located in Puerto Rico. During its current fiscal

year, ended December $31,2021,$ Buena Vida Inc, completed the following selected transactions:

Feb. $3.$ Purchased $2,500$ shares of its own common stock at $$26,$ recording the stock at cost$.$

$($Prior to the purchase, there were $40,000$ shares of $$20$ par common stock outstanding.$)$

May $1.$ Declared a semiannual dividend of S$1$ on the $10,000$ shares of preferred sock and a $30c$

dividend oa the common stock to stockholders of record on May $31,$ payable on June IS$.$

June $15.$ Paid the cash dividends.

Sept. $23.$ Sold $1\mathrm{.}000$ shares of treasury stock at $$28,$ recciving casti.

Nov. $1.$ Declared semiannual dividends of $$1$ on the preferred stock and $30e$ on the common

stock. In addition, a $5\%$ common stock dividend was declared on the common stock ootstanding,

to be capitalized at the fair market value of the common stock, which is estimated at $$30.$

Dec. $1.$ Paid the cash dividends declured in November $1$ and issued the cerificates for the

common stock dividend.

lastructions:

Journalize the entries to recond the transactions for Bucna Vida Inc: