On January 1, Skysong, Inc. had 90,500 shares of no-par common stock issued and
ID: 2514854 • Letter: O
Question
On January 1, Skysong, Inc. had 90,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. Issued 21,000 additional shares of common stock for $19 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30 July 10 Paid the $1 cash dividend. Dec. 1 Issued 2,500 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $4.30 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 O 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 Date Account Titles and Explanation Debit Credit June 15 July 10 Dec. 15Explanation / Answer
Answer
No. of shares outstanding
Par Value (at $5)
Additional Paid in capital in excess of Par
Dividend
Jan 1 balance
90500
$452500
$0
(+)Issued Apr 1
21000
$105000
$294000
June 30 Balance
111500
$557500
$294000
$111500 [111500 shares x $1]
(+) Dec 1 Issued
2500
$12500
$32500
Dec 31 Balance
114000
$570000
$326500
$490200 [ 114000 shares x $4.3]
Date
Accounts Titles
Debit
Credit
15-Jun
Dividends
$ 1,11,500.00
Dividends payable
$ 1,11,500.00
10-Jun
Cash
$ 1,11,500.00
Dividends
$ 1,11,500.00
15-Dec
Dividends
$ 4,90,200.00
Dividends payable
$ 4,90,200.00
No. of shares outstanding
Par Value (at $5)
Additional Paid in capital in excess of Par
Dividend
Jan 1 balance
90500
$452500
$0
(+)Issued Apr 1
21000
$105000
$294000
June 30 Balance
111500
$557500
$294000
$111500 [111500 shares x $1]
(+) Dec 1 Issued
2500
$12500
$32500
Dec 31 Balance
114000
$570000
$326500
$490200 [ 114000 shares x $4.3]