Journalize the Following Selected Transactions Completed During the Current Fiscal

question 55

Essay

Journalize the following selected transactions completed during the current fiscal year:
Jan. 3 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000.
22 Declared a dividend of $1.75 per share on the outstanding shares of common stock.
Feb. 8 Paid the dividend declared on January 22.
Sept. 1 Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $30).
Oct. 1 Issued the certificates for the common stock dividend declared on September 1.

---

Definitions:

Unexpected Price Changes

Price movements that occur without prior indication or contrary to the predictions based on market or economic fundamentals.

Contract

A legally binding agreement between parties that outlines the terms and conditions of a particular arrangement or deal.

Forward Contracts

Agreements to buy or sell an asset at a future date for a price agreed upon today, often used for hedging or speculation.

Marked-To-The Market

An accounting practice where assets or securities are valued according to their current market price, not their purchase price or book value.