Reference no: EM131566582

Problem - On December 31, 2017, Raleigh Corp. had the following balances (all balances are normal)

Preferred Stock ($40 par value, 5% noncumulative, 100,000 shares authorized, 30,000 shares issued and outstanding) $1,200,000

Common Stock ($2 par value, 4,000,000 shares authorized, 950,000 shares issued and outstanding) $1,900,000

Paid-in Capital in Excess of par, common $650,000

Retained Earnings $1,420,000

Prepare journal entries for the transactions listed below for Raleigh Corporation

a. on January 1, Raleigh Corp. declared a 9% stock dividend on its common stock when the market value of the common stock was $21.25 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.

b. On February 15, Raleigh Corp. acquired 8,500 shares of common stock for $24 each.

c. On March 31, Raleigh Corp. reissued 2,250 of treasury stock for $22 each.

d. On July 1, Raleigh Corp. reissued 2,500 shares of treasury stock for $19 each.

e. On October 1, Raleigh Corp. declared full year dividends for preferred stock plus $1.40 cash dividends for outstanding common shares. Shares holder dividends were paid on October 15.