FINANCIAL ACCOUNTING II
As of January 2, 2024, The Seeplus Company had the following items in its
capital structure:
• Preferred stock, $5 par value, $3 dividend, 100,000 shares authorized,
80,000 shares issued, 20,000 shares of treasury stock.
• Common stock, $4 stated value, 40,000 shares authorized, 25,000
shares issued and outstanding.
• Retained earnings of $612,000.
On August 1, 2024, Seeplus's Board of Directors declared a 15% common
stock dividend, for shareholders of record on September 1, 2024, when the
market value of the common stock was $7 per share and the market value
of the preferred stock was $9 per share.
When the dividend was distributed on October 1, 2024, 30% of the dividend
was issued in the form of fractional-share stock rights.
On December 31, 2024, Seeplus was notified by its stock transfer agent that
60% of the fractional-share stock rights had been exchanged for common
stock, and the remaining fractional-share stock rights had expired.
Also on December 31, 2024, after the common stock dividend was
accounted for, the Board of Directors declared the cash dividend due to the
preferred shareholders for 2024 and a cash dividend of $1 per share for the
common shareholders, both to be paid in early 2025.
Provide all the journal entries necessary for The Seeplus Company's stock
and cash dividends in 2024.
