Corporation 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 $$1$ on the $10,000$ shares of preferred stock and a $30!in$ dividend on the common stock to stockholders of record on May $31,$ payable on June $15.$

June $15.$ Paid the cash dividends.

Sept. $23.$ Sold $1,000$ shares of treasury stock at $$28,$ receiving cash.

Nov. $1.$ Declared semiannual dividends of $$1$ on the preferred stock and $30c$ on the common stock. In addition, a $5\%$ common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $$30.$

Dec. $1.$ Paid the cash dividends declared in November $1$ and issued the certificates for the common stock dividend.

Instructions;

Journalize the entries to record the transactions for Buena Vida Inc.