On January 1, Guillen Corporation had 90,600 shares of no-par common stock issue
ID: 2493860 • Letter: O
Question
On January 1, Guillen Corporation had 90,600 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 28,300 additional shares of common stock for $17 per share.
June15 Declared a cash dividend of $2 per share to stockholders of record on June 30.
July10 Paid the $2 cash dividend.
Dec.1 Issued 1,700 additional shares of common stock for $18 per share.
Dec 15Declared a cash dividend on outstanding shares of $1.80 per share to stockholders of record on December 31.
Prepare the entries, if any, on each of the three dividend dates. (Record journal entries in the order presented in the problem. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Explanation / Answer
journal entries:
April 1 cash Dr.$481100
To Common stock(28300 *$7) $198100
To Additional paid in capital(28300 *$10) $283000
(Being Common stock issued at $17 over Stated value of $7)
June 15 Cash dividend Dr. $237800
To Dividend payable([90600+28300] * $2) $237800
(being cash dividend declare or due )
July 10 Dividend payable Dr. $237800
To Cash $237800
(being Dividend payable Paid )
December 1 Cash Dr.$30600
To Common stock(1700 * $7) $11900
To Additional paid in Capital(1700*$11) $18700
(Being Common stock issued at $18 over Stated value of $7)
December 15 Cash dividend Dr.$217080
To dividend payable(120600 *$1.80) $217080
(being Dividend declare to be paid )
Note:- outstanding shares = 90600 + 28300 + 1700 = 120600 shares
Entry for declared dividend to be paid in january:
Dividend payable Dr.$217080
To cash (120600 *$1.80) $217080
(being Dividend paid declared in december )