On January 1, Martinez Corp. had 61,800 shares of no-par common stock issued and

Question

On January 1, Martinez Corp. had 61,800 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 13,050 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.60 per share to stockholders of record on June 30. July 10 Paid the $1.60 cash dividend. Dec. 1 Issued 5,800 additional shares of common stock for $12 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

Explanation / Answer

(a)

Date Account titles and explanation Debit Credit June 15 Cash Dividends $119,760 Dividends Payable $119,760 July 10 Dividends Payable $119,760 Cash $119,760 Dec. 15 Cash Dividends $161,300 Dividends Payable $161,300

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