On January 1, Tellier Corporation had 60,000 shares of no-par common stock isssu
ID: 2359341 • Letter: O
Question
On January 1, Tellier Corporation had 60,000 shares of no-par common stock isssued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occured. April 1 Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.50 per share to stocholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec 1 Issued 4,000 additional shares of common stock for $12 per share. Dec 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31. a) Prepare the entries, if any, on each of the three dates tat involved dividends. b) How arae dividends and dividends payable reported in the financial statements prepared at December 31?Explanation / Answer
Journal Entries: Date Accounts title and explanations Debit $ Credit $ 1-Apr Cash Account Dr. 99000 Common Stock (9000 shares @4) 36000 Additional Paid in Capital Account 63000 15-Jun Dividend-Common Stock Dr. (69000shares@1.50) 103500 Dividend payable 103500 10-Jul Dividend payable Dr. 103500 Cash Account 103500 1-Dec Cash Account Dr. 48000 Common Stock (4000 shares @4) 16000 Additional Paid in Capital Account 32000 15-Dec Dividend-Common Stock Dr. (73000shares@1.60) 116800 Dividend payable 116800 31-Dec Retained earnings Dr. 220300 Dividend-Common Stock 220300 Balance Sheet: Current Liabilities: Dividend payable 116800