Court Casuals has 200,000 shares of common stock outstanding as of the beginning
ID: 2488251 • Letter: C
Question
Court Casuals has 200,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.
Declares a cash dividend of $2 per share to all stockholders of record on July 15.
Hint: Dividends are not paid on treasury stock.
Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Court Casuals has 200,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.
Explanation / Answer
Date Accounts Title & Explanations Debit($) Credit ($) May-18 Cash 1032000 Common stock 24000 Paid in capital in excess of par 1008000 (issued common stock) May-31 Treasury stock (at cost) 210000 Cash 210000 (repurchase treasury stock) Jul-01 Retained earnings 438000 Cash dividend distributable 438000 (cash dividend declared) Jul-31 Cash dividend distributable 438000 cash 438000 (cash dividend paid) Aug-10 Cash 110000 Treasury stock (at cost) 17600 Paid in capital in excess - treasury stock 92400 (Reissued treasury stock at a premium of $8 per stock)