Prepare the journal entries that blt recorded

Assignment Help Taxation
Reference no: EM13950823

Listed below are the transactions that affected the shareholder's equity of BLT Corporation during the period 2010-2012. At December 31, 2009, the corporation's accounts included:

Common stock, 315 million shares at $1 par..... $ 315,000,000
Paid in capital excess of par............. $ 1,890,000
Retained earnings.................. $ 2,910,000

a. November 2, 2010, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 16, to be paid December 2.

b. On March 2, 2011, the board of directors declared a property dividend consisting of corporate bonds of Blair County that BLT was holding as an investment. The bonds had a fair market value of $4.8 million, but were purchased two years previously for $3.9 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 14, to be distributed April 6.

c. On July 13, 2011, the corporation declared and distributed a 5% common stock dividend (when the market value of the common stock was $21 per share).

d. On November 2, 2011, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 16, to be paid December 2.

e. On January 16, 2012, the board of directors declared and distributed 50% stock dividend when the market value of the common stock was $23 per share.

f. On November 2, 2012, the board of directors declared a cash dividend of $0.65 per share on its common shares, payable to shareholders of record November 16, to be paid December 2.

Required:

1. Prepare the journal entries that BLT recorded during the three-year period for these transactions. SHOW ALL WORK(Bench-mark figures below)
Decreases to Retained Earnings
2010............252,000,000
2011............600,150,000
2012............487,856,000

Chapter 15 Preferred and Common Cash Dividends:

1048_68-b-a-i-s--1070-.png

Reference no: EM13950823

Questions Cloud

What is the importance of bandwidth : What would the Web be like if there were no limit to bandwidth?
Define what is part of the project : Discuss the statement: Failing to define what is not part of the project is just as important as failing to define what is part of the project.
Sales promotions are expensive to administer : Sales promotions are expensive to administer and can be fraught with legal complications. Sales promotions yield their most positive results when carefully integrated with the overall advertising plan. Identify which of the sales promotion techniques..
International competitors within the chosen industry : Select one (1) global industry, such as the automobile or cell phone industry. Next, use the Internet to research three (3) major international competitors within the chosen industry. Take note of manner in which the popular international business..
Prepare the journal entries that blt recorded : On November 2, 2012, the board of directors declared a cash dividend of $0.65 per share on its common shares, payable to shareholders of record November 16, to be paid December 2.
Select a template to explore. what was its purpose : What would be an advantage of using this template over creating your presentation from scratch? What would be a disadvantage?
Describe posttraumatic stress disorder : Describe posttraumatic stress disorder (PTSD). Identify some of the biological, psychological, and social factors associated with the disorder. Briefly discuss how PTSD could treated using the psychological, biomedical and social approaches descri..
Projected ROEs between the restricted and relaxed policie : Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. The firm’s annual sales are $400,000; its fixed assets are $100,000; What is the differe..
The dividends are expected to grow at a constant rate : Heard, Inc. just paid a dividend of $1.75 per share on its stock (that is, Div0 = $1.75). The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. If investors require a 12 percent return on Heard stock, what is the ..

Reviews

Write a Review

 

Taxation Questions & Answers

  What is the underlying policy rationale for current tax rule

What is the underlying policy rationale for the current tax rules applicable to interest income and dividend income? Compare tax treatment of interest from a Treasury bond and qualified dividends from corporate stock.

  Putting artificial satellites into orbits around the earth

Science, like any knowledge, can be put to good or bad use, depending on the user. Given below are some of the applications of science. Formulate your views on whether the particular application is good, bad or something that cannot be so clearly ..

  How much was the firm taxable income or earnings

ABC recently reported $42,198 of sales, $13,908of operating costs other than depreciation, and $5,423 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 10% in..

  What marginal tax rate should it use - beta corporation

Beta Corporation anticipates $800,000 of taxable income for the year before considering additional projects. What marginal tax rate should it use in evaluating a project that may generate $200,000 of additional income?

  What are three types of special tax credits

What are three types of special tax credits and what are the limitations on special tax credits? Why do these credits exist?

  Evidence of analytical thinking in logical reasoning

Consider the CGT consequences of the above transactions by determining whether the assets are CGT assets, collectables or personal use assets. Identify the relevant laws and apply them with appropriate details required to support your recommendat..

  Calculate kline''s intraperiod income tax expense

The company is subject to income tax rates of 30% on the first $40,000 of income and 35% on all income in excess of $40,000. Prepare a schedule to calculate Kline's intraperiod income tax expense (and credit) amounts.

  Discuss capital gains tax

Discuss whether a capital gains tax, in your opinion, would result in a more equitable tax system in New Zealand and Discuss whether your client is a tax resident in New Zealand?

  What are the capital gains implications

Baz Baxter always wanted be a pilot but for the moment works as an air traffic controller at the local airport and is employed by the Department of Aviation. Baz holds a pilot's licence and during the current income year incurs $1500 expenses conn..

  Question as a tax practitioner you frequently get people

question as a tax practitioner you frequently get people asking questions concerning the tax effect of property

  Compute ivory corporation 2011 deduction

On December 31, 2011, Ivory accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 1, 2012, compute Ivory Corporation's 2011 deduction for the above amounts.

  Prepare an income statement for the year 2012

Prepare an income statement for the year 2012 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd