On January 1, Vanessa Corporation had 60,000 shares of no-par common stock issue
ID: 2595749 • Letter: O
Question
On January 1, Vanessa Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Put the entries into a tabular summary.
Apr. 1 Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31.Explanation / Answer
Date
Particulars
Debit
Credit
April 1
Cash
99000 (9000*11)
Common Stock
99000
June 15
No Entry because only declaration has been made.
July 10
Retained Earnings
103500 [(60000+9000)*1.50]
Cash
103500
Dec 1
Cash
48000 (4000*12)
Common Stock
48000
Dec 15
No Entry because only declaration has been made.
Date
Particulars
Debit
Credit
April 1
Cash
99000 (9000*11)
Common Stock
99000
June 15
No Entry because only declaration has been made.
July 10
Retained Earnings
103500 [(60000+9000)*1.50]
Cash
103500
Dec 1
Cash
48000 (4000*12)
Common Stock
48000
Dec 15
No Entry because only declaration has been made.