On January 1, Guillen Corporation had 96,000 shares of no-par common stock issue
ID: 2459163 • Letter: O
Question
On January 1, Guillen Corporation had 96,000 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.
(a)
Prepare the entries, if any, on each of the three dividend dates. (If no entry is required, select "No entry" for the account titles and enter 0 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Explanation / Answer
a) Journal Entries:
Date Accounts Title and Explanation Debit $ Credit $ Apr 1 Cash 500,400 Common Stock Stated Value $5 139,000 Paid in capital in excess of stated value - common stock 361,400 (Issued 27,800 additional shares of common stock for $18 per share.) june 15 Retained Earnings 123,800 Dividend Payable @$1 123,800 (Declared a cash dividend of $1 per share to stockholders of record on June 30.) July 10 Dividend Payable @$1 123,800 Cash 123,800 ( Being Paid the $1 cash dividend.) Dec 1 cash 24700 Common Stock Stated Value $5 6500 Paid in capital in excess of stated value - common stock 18200 (Issued 1,300 additional shares of common stock for $19 per share.) Dec 15 Retained Earnings 562,950 Dividend payable @$4.50 562,950 (Being declared a cash dividend on outstanding shares of $4.50 per share to stockholders of record on December 31.)