As of January I,2014,the equity section of LD Food Co.'s balance sheet contained the following:
outstanding
common shares
30,000 issued and outstanding
• On May 1,2014,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2014,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November I,2014,the company declared and paid the annual cash dividends on the preferred shares.On the same day,the company issued a 5% stock dividend on common shares.LD Food's stock traded at $7/share after the dividend.
Requirement:
Record the journal entries for the above transactions occurring in 2014.

Question

As of January I,2014,the equity section of LD Food Co.'s balance sheet contained the following:
  outstanding
  common shares
  30,000 issued and outstanding
  • On May 1,2014,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2014,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November I,2014,the company declared and paid the annual cash dividends on the preferred shares.On the same day,the company issued a 5% stock dividend on common shares.LD Food's stock traded at $7/share after the dividend.
Requirement:
Record the journal entries for the above transactions occurring in 2014.

Quizplus · Accepted Answer

The Answer of As of January I,2014,the equity section of LD Food Co.'s balance sheet contained the following:
  outstanding
  common shares
  30,000 issued and outstanding
  • On May 1,2014,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2014,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November I,2014,the company declared and paid the annual cash dividends on the preferred shares.On the same day,the company issued a 5% stock dividend on common shares.LD Food's stock traded at $7/share after the dividend.
Requirement:
Record the journal entries for the above transactions occurring in 2014.

As of January I,2014,the Equity Section of LD Food Co