On January 1, Blue Spruce Corp. had 63,300 shares of no-par common stock issued
ID: 2599269 • Letter: O
Question
On January 1, Blue Spruce Corp. had 63,300 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. Apr. 1 Issued 19,800 additional shares of common stock for $13 per share. June 15 Declared a cash dividend of $1.65 per share to stockholders of record on June 30. July 10 Paid the $1.65 cash dividend. Dec. 1 Issued 8,800 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.85 per share to stockholders of record on December 31. (a) Prepare the entries, if any, on each of the three dates that involved dividends.
Explanation / Answer
JOURNAL ENTRIES
Date
Particulars
Debit
Credit
1, April
Bank
2,57,400
Common Stock
2,57,400
(Being Shares issued)
10, July
Dividend
1,37,115
Cash
1,37,115
(Being dividend paid)
1, Dec.
Bank
96,800
Common Stock
96,800
(being shares issued)
15, Dec.
Dividend
1,70,015
Shareholder
1,70,015
(Being dividend declared)
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JOURNAL ENTRIES
Date
Particulars
Debit
Credit
1, April
Bank
2,57,400
Common Stock
2,57,400
(Being Shares issued)
10, July
Dividend
1,37,115
Cash
1,37,115
(Being dividend paid)
1, Dec.
Bank
96,800
Common Stock
96,800
(being shares issued)
15, Dec.
Dividend
1,70,015
Shareholder
1,70,015
(Being dividend declared)