On January 1, Guillen Corporation had 94,000 shares of no-par common stock issue

Question

On January 1, Guillen Corporation had 94,000 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.

(a)

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.)

Apr. 1 Issued 23,000 additional shares of common stock for $19 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 1,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $1.80 per share to stockholders of record on December 31.

Explanation / Answer

15-Jun Cash Dividends 234000 =(94000+23000)*2         Dividends Payable 234000 10-Jul Dividends Payable 234000        Cash 234000 15-Dec Cash Dividends 212400 =(94000+23000+1000)*1.8         Dividends Payable 212400

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