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Prepare journal entries for ABC Co.’s following events.05/12/08 Received charter authorizing ABC Co. to issue 20,000 shares of common stock at a par value of $2 per share06/03/08 Issued 8,000 shares of stock, receiving $40,000.06/04/08 Paid the law firm of Lo, Ball and Hyde for their services to help organize the company by sending them two thousand shares of stock.11/15/08 Declared a cash dividend of $2 per share , payable on 01/15/09, to holders of record as of 12/15/08.12/15/08 Make the appropriate entry.12/31/08 Make any necessary adjusting entry.01/15/09 Make the appropriate entry.06/12/09 Declared a ten percent (10%) stock dividend,payable on 7/15/09( ignore the date of record for this event).The market value of the stock is $15 per share.7/15/09 Make the appopriate entry.8/15/09 Declared a two-for-one stock split. The market value of the stock is $15 per share.9/15/09 Declared and paid a cash dividend of $2 per share(pretend this happens all in one day).10/01/09 Purchased 1,000 shares of treasury stock for a total price of $30,000.10/15/09 Declared and paid a cash dividend of $2 per share.11/15/09 Reissued 400 shares of treasury stock at $32 each.12/15/09 Reissued the remaining treasury stock at $10 per share
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