On January 1, Pina Colada Corp. had 62,100 shares of no-par common stock issued
ID: 2472895 • Letter: O
Question
On January 1, Pina Colada Corp. 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 14,400 additional shares of common stock for $12 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 6,400 additional shares of common stock for $13 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31. Prepare the entries, if any, on each of the three dates that involved dividends. (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
June 15. Proposed dividend a/C Dr.
To dividend payable
July 10. Dividend payable. Dr
To bank account
Dec 15. Proposed dividend a/C Dr.
To dividend payable