On January 1, Guillen Corporation had 93,000 shares of no-par common stock issue
ID: 2475761 • Letter: O
Question
On January 1, Guillen Corporation had 93,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $7 per share. During the year, the following occurred. Apr. 1 Issued 20,500 additional shares of common stock for $18 per share. June 15 Declared a cash dividend of $2 per share to stockholders of record on June 30. July 10 Paid the $2 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $3.50 per share to stockholders of record on December 31. Prepare the entries, 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.)Explanation / Answer
Amount ( $ ) Date Account titles and Explanation Debit Credit 1-Apr Cash - Dr (20500 shares * $ 18 per share) 369,000 To Common Stock (20500 shares * $ 7 per share) 143,500 To Additional Paid in Capital (20500 shares * $ 11 per share) 225,500 (Being Issued additional 20500 shares of common stock @ 18 per share) 15-Jun Retained Earnings -Dr 227,000 To Dividend Payable 227,000 (93000+20500 shares * $ 2 per share) (Being dividend declared @ $ 2 per share as a record date june 30) 10-Jul Dividend Payable - Dr 227,000 To Cash 227,000 (Being Declared dividend on 15th June was paid) 1-Dec Cash - Dr (2000 shares * $ 18 per share) 36,000 To Common Stock (2000 shares * $ 7 per share) 14,000 To Additional Paid in Capital (2000 shares * $ 11 per share) 22,000 (Being Issued additional 2000 shares of common stock @ 18 per share) 15-Dec Retained Earnings -Dr 404,250 To Dividend Payable 404,250 (93000+20500 + 2000 shares * $ 3.5 per share) (Being dividend declared @ $ 3.5 per share as a record date December 31)