On January 1, Guillen Corporation had 93,500 shares of no-par common stock issue

Question

On January 1, Guillen Corporation had 93,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred Apr. 1 Issued 20,000 additional shares of common stock for $16 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 3,000 additional shares of common stock for $18 per share Declared a cash dividend on outstanding shares of $1.00 per share to stockholders of record on December 31 15 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.) Date Account Titles and Explanation Debit Credit June 15 Cash Dividends 227000 Dividends Payable 227000 July 10Dividends Payable 227000 Cash 227000 Dec. 15Cash Dividends Dividends Payable

Explanation / Answer

SOLUTION

Date Account titles and Explanation Debit ($) Credit ($) June 15 Dividends (93,500 + 20,000) * $2 227,000 Dividends Payable 227,000 July 10 Dividends Payable 227,000 Cash 227,000 Dec.15 Dividends (93,500 + 20,000 + 3,000) * $1 116,500 Dividends Payable 116,500

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