On January 1, Molini Corporation had 95, 000 shares of nopar common stock issued
ID: 2444853 • Letter: O
Question
On January 1, Molini Corporation had 95, 000 shares of nopar common stock issued and outstanding. The stock has a statedvalue of $5 per share. During the year, the following occurred.
Apr. 1 Issued 25,000 additional sharesof common stock for $17 per share
June 15 Declared cash divided of $ 1 per share tostock holders of record on June 30.
July 10 Paid $1 Cash dividend
Dec 1 Issued 2,000 additionalshares of common stock for $19 per share
Dec 15 declared a cash dividend on outstandingshares of $1.20 per share to stock holders of record on December31.
Instructions:
Explanation / Answer
Date
Details
Debit
Credit
Date
Details
Debit
Credit
1-Apr Cash 425,000.00 Common Stock 125,000.00 Additional Paid in Capitalin excess of stated value 300,000.00 15-Jun Retained Earnings 120,000.00 Cash DividendPayable 120,000.00 10-Jul Cash Dividend Payable 120,000.00 Cash 120,000.00 1-Dec Cash 38,000.00 Common Stock 10,000.00 Additional Paid in Capitalin excess of stated value 28,000.00 15-Dec Retained Earnings 146,400.00 Cash DividendPayable 146,400.00