Mucky Corporation was just formed. The following accounts of Mucky Corporation, with code letters, are needed to record the transactions given below. You are to indicate the appropriate journal entry for each transaction by entering the code letters and the correct amounts.
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A.
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Cash
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G.
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Bonds payable
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B.
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Remaining assets
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H.
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Contributed capital in excess of par
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C.
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Retained earnings
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I.
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Treasury stock
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D.
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Common stock, par $20
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J.
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Other accounts not listed
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E.
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Dividends payable
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K.
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Dividends declared
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F.
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Accounts payable
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L.
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No entry needed
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Transaction
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Debits
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Credits
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Code
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Amount
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Code
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Amount
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1.
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Sold and issued 10 common shares at par. Disregard in subsequent transaction.
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A
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$200
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D
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$200
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2.
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Sold and issued 5,000 shares common stock at $26 per share.
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A
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$130000
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D
H
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$100000
$30000
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3.
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Issued a 10% stock dividend when the stock was selling at $30 per share.
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K
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$10020
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E
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$10020
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4.
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Declared a cash dividend of $1 per share on the shares outstanding.
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K
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$5010
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E
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$5010
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5.
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Paid the cash dividend of $1 per share declared earlier (see above).
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E
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$5010
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A
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$5010
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6.
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Purchased 100 shares of treasury stock at $27 per share.
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I
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$2700
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A
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$2700
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7.
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Issued a 2-for-1 stock split when the market price was $30 per share.
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