On January 1, Guillen Corporation had 95,000 shares of no-par common stock issue
ID: 2333311 • Letter: O
Question
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred Apr. Issued 25,000 additional shares of common stock for $17 per share June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend Dec. Issued 2,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $1.2 per share to stockholders of record on December 31 Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 1 Cash 425,000 Common Stock 125,000 Paid-in Capital in Excess of Stated Value-Common 300,000 June 15 Cash Dividends Dividends Payable July 10 Dividends Payable Cash Dec. 1 Cash 38,000 Common Stock 10,000 Paid-in Capital in Excess of Stated Value-Common 28,000 Dec. 15 Cash Dividends Dividends PayableExplanation / Answer
Answers
A
Beginning no. of shares
95,000
B
Issued on Apr 1
25,000
C =A+B
Total shares on June 15
120,000
D
Dividend rate on June 15
$ 1.00
E = C x D
Amount of dividend declared
$ 120,000.00
Date
Debit
Credit
Jun-15
Cash Dividends
$ 120,000.00
Dividends payable
$ 120,000.00
(Dividend declared)
Date
Debit
Credit
Jul-10
Dividends payable
$ 120,000.00
Cash
$ 120,000.00
(Cash paid for declared dividend)
A
No. of sharesbefore Dec 1 Issue
120,000
B
Issued on Dec 1
2,000
C = A+B
Total no. of shares for Dec 15 Dividend
122,000
D
Rate of dividend per share
$ 1.20
E = CxD
Amount of Cash dividend declared
$ 146,400.00
Entry
Date
Debit
Credit
Dec-15
Cash Dividends
$ 146,400.00
Dividends payable
$ 146,400.00
(Dividend declared)
A
Beginning no. of shares
95,000
B
Issued on Apr 1
25,000
C =A+B
Total shares on June 15
120,000
D
Dividend rate on June 15
$ 1.00
E = C x D
Amount of dividend declared
$ 120,000.00