On January 1, Vanessa Corporation had 63,700 shares of no-par common stock issue
ID: 2467886 • Letter: O
Question
On January 1, Vanessa Corporation had 63,700 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.
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Apr. 1 Issued 12,510 additional shares of common stock for $13 per share. June 15 Declared a cash dividend of $2.00 per share to stockholders of record on June 30. July 10 Paid the $2.00 cash dividend. Dec. 1 Issued 7,840 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.30 per share to stockholders of record on December 31.Explanation / Answer
Account Titles Debit Credit $ $ April 1 Cash 162,630 Common stock 50,040 Paid-in capital in excess of stated value 112,590 June 15 Retained earnings 152,420 Cash dividends payable 152,420 July 10 Cash dividends payable 152,420 Cash 152,420 Dec 1 Cash 86,240 Common stock 31,360 Paid-in capital in excess of stated value 54,880 December 15 Retained earnings 193,315 Cash dividends payable 193,315