Problem 11-8A (Part Level Submission) On January 1, 2017, Cheyenne Corp, had the
ID: 2532625 • Letter: P
Question
Problem 11-8A (Part Level Submission) On January 1, 2017, Cheyenne Corp, had these stocknolders equity accounts Common Stock ($10 par value, 68,500 shares issued and cutstanding) Paid-in Capital in Excess of Par Velue Rctained Earnings $635,000 OD,000 During the year, the fellowing transactions occurred Jan. 15 Declared sn.40 cash dividend per share to stnckhalders of recard on lanuary 31, payable February 15. Feb. 15 Pald the dividend declared In January, Apr. 15 Declared a 10% stock dividend to stockholders or record on April 30, distributable May 15. On Apri 15, the market price of the stock was $12 per share. May 15 Issued the shares or the stock dividend. Dec. 1 Declared SD.50 per share cah dividend to stockhalders of recard on December 15, Dec. 31 Daterminad that nat income far the year was $446,0n0. , payable Fehruary 15 payable January 10, 2018 nalize tho transactions. (Include antries to dosa net income and dividends to Retained Eamings.) (Rcond ontries in the order displayed in the problem statoment. Credit account titles aro automatically indented wwhon amount is entarod. Do not indent manally. If no entry is required, select "No Entry" for the account titlos and enter for the amounts.)Explanation / Answer
Date Account Description Debit Credit 15-Jan Dividend 24,200.00 To Dividend Payable 24,200.00 Being Common Stock Dividend *0.4 per share declared) 15-Feb Dividend Payable 24,200.00 To cash 24,200.00 (Being Dividend Paid) 15-Apr Retained Earnings 72,600.00 Paid in Capital in Excess of Par 12,100.00 To Stock Dividend Distributable 60,500.00 (Being 10% Stock Dividend declared) 15-May Paid in Capital in Excess of Par 12,100.00 To Common Stock 12,100.00 (Being Common Stock Issued) 1-Dec Dividend 33,275.00 To Dividend Payable 33,275.00 Being Common Stock Dividend *0.5 per share declared) 31-Dec Dividend Payable 33,275.00 To cash 33,275.00 (Being Dividend Paid)