As of January 1,2018,the equity section of LD Food Co.'s balance sheet contained the following:
• On May 1,2018,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2018,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November 1,2018,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.
Required:
Record the journal entries for the above transactions occurring in 2018.

Question

As of January 1,2018,the equity section of LD Food Co.'s balance sheet contained the following:
  • On May 1,2018,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2018,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November 1,2018,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.
Required:
Record the journal entries for the above transactions occurring in 2018.

Quizplus · Accepted Answer

The Answer of As of January 1,2018,the equity section of LD Food Co.'s balance sheet contained the following:
  • On May 1,2018,the company spent $802,500 to repurchase 300,000 common shares.These shares were cancelled immediately.
• On July 15,2018,the company repurchased and cancelled 4,000 preferred shares at $15/sh.
• On November 1,2018,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.
Required:
Record the journal entries for the above transactions occurring in 2018.

As of January 1,2018,the Equity Section of LD Food Co