Winterborn manufacturing co. completed the following transactions during 2016:
jan 16. declared a cash dividend on the 4â%, â$100 par noncumulative preferred stock â(950 sharesâ outstanding). declared a $ 0.30 per share dividend on the 90,000 shares of â$10 par value common stock outstanding. the date of record is januaryâ 31, and the payment date is february 15.
feb. 15. paid the cash dividends. jun. 10. split common stock 2-for-1.july 30. declared a 50% stock dividend on the common stock. the market value of the common stock was $10 per share. aug. 15. distributed the stock dividend. oct. 26. purchased 1,400 shares of treasury stock at $9 per share. nov. 8. sold 700 shares of treasury stock for $11 per share. nov. 30. sold 500 shares of treasury stock for $6 per sharerequired: 1. record the transactions in winterborn's general journal.2. prepare the winterborn's stockholders' equity section of the balance sheet as of december 31, 2016.

Dividends 30,800 debit

 Dividends payable    30,800 credit

--to record cash dividends declared--

Dividends payable    30,800 debit

                 Cash                      30,800 credit

--to record payment of cash dividends--

Jun 10 no entry required the split do not change the total value of the preferred stock

August 15th

Retained earnings 450,000 debit

        Common stock          450,000 credit

--to record stock dividends--

treasury stock   12,600 debit

       cash                        12,600 credit

--to record purchase of treasury stock--

cash     7,700 debit

     treasury stock    6,300 credit

    additional paid-in TS 1,400 credit

--to record sale of TS--

cash                         3,000 debit

additional paid-in TS  500 debit

          treasury stock           3,500 credit

--to record sale of TS--

Explanation:

Jan 16th cash dividends 950 shares x $100 par x 4% = $3,800

90,000 shares x 0.30 per share = 27,000

Total 27,000 + 3,800 = 30,800

July 30th:

value of the stock dividends:

90,000 shares x $10 x 50% = 450,000

recorded when distributed.

Treasury stock: we record at cost. Then at sale date we compare with this cost and determinate wether we create an additional paid-in for the stock or if we should decrease retained earnings when sale at "loss"

purchase: 1,400 shares x $9 per share = 12,600

sale 700 x $11 = 7,700

cost 700 x $ 9 = 6,300

addtional paid in TS 1,400

second sale 500 x $ 6 = 3,000

cost               500 x $ 7 = 3,500

decrease in additional paid-in TS 500

answer; /// i do believe that the above is (true)

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.