On January 1, Tellier Corporation had 62,100 shares of no-par common stock issue

Question

On January 1, Tellier Corporation had 62,100 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 21,330 additional shares of common stock for $12 per share. June 15 Declared a cash dividend of $1.70 per share to stockholders of record on June 30. July 10 Paid the $1.70 cash dividend. Dec. 1 Issued 6,080 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.20 per share to stockholders of record on December 31

Explanation / Answer

June 15
Debit Retained Earnings 141,831 [83,430 shares outstanding x 1.70 per share]
Credit Dividends Payable 141,831

July 10
Debit Dividends Payable 141,831
Credit Cash 141,831

Dec 15
Debit Retained Earnings 196,922 [89,510 shares outstanding x 2.20 per share]
Credit Dividends Payable 196,922

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