Pool Corporation, Inc., is the world\'s largest wholesale distributor of swimmin
ID: 2582087 • Letter: P
Question
Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. The majority of Pool's customers are small, family-owned businesses. The company issued the following press release:
COVINGTON, La., March 2, 2015 (GLOBE NEWSWIRE)—Pool Corporation (Nasdaq: POOL) announced today that its Board of Directors declared a quarterly cash dividend of $0.22 per share. The dividend will be payable on March 26, 2015, to holders of record on March 12, 2015.
The Company also announced in its 2014 Annual Report that it had repurchased $132.3 million of its common stock in the open market.
Prepare the journal entry for Pool Corporation to record the repurchase of shares. Prepare all necessary entries associated with the dividend. Assume that at the time of the dividend, Pool was authorized to issue 100 million shares and had 43 million shares outstanding
Explanation / Answer
Tresurey stock a/c ... dr $ 132.3m
To Bank $ 132.3 m
(being common stock repurchased)
March 12
Retained earnings (.22 X 43m) ....dr 9.46m
To Dividend payable 9.46m
(being dividend declared/payable)
March 26
Dividend payable a/c....dr 9.46m
To Bank 9.46m
(being dividend paid)