Journalize the Following Selected Transactions Completed During the Current Fiscal

question 81

Essay

Journalize the following selected transactions completed during the current fiscal year:Mar. 24The board of directors of New Town, Inc. declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.​​26Declared a dividend of $1.75 per share on the outstanding shares of common stock.​​Apr. 5Paid the dividend declared on March 26.​​Nov. 1Declared a 5% stock dividend on the common stock outstanding
(the fair market value of the stock to be issued is $25).​​Dec. 1Issued the certificates for the common stock dividend declared on November 1.

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Definitions:

Realized Gross Profit

The portion of profit earned from goods that have been sold, reflecting actual gains rather than estimated.

Installment Sales Method

An accounting method that recognizes revenue and expense when payments are actually received rather than at the point of sale.

Cash Collections

The process of gathering all cash payments received from customers over a period.

Cost Of Installment Goods Sold

The cost attributed to products sold under an installment sales agreement, recognizing expenses as revenues are realized.