On January 1, Guillen Corporation had 95,000 shares of no-par common stock issue
ID: 2604901 • Letter: O
Question
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
(a)
Prepare the entries to record these transactions. (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.)
Date
Account Titles and Explanation
Debit
Credit
Apr. 1 Issued 25,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $1.2 per share to stockholders of record on December 31.Explanation / Answer
Journal Entry Worksheet
Guillen Corporation
(Dividend Declared @1 Per shares issued)
Total shares issued = 25000+95000 = 120000
Dividend @ $1 = $1*120000 = $120000
Serial Number Date Accounts Title Debit Credit 1 April 1 Cash (25000*$17) $425000 Common Stock $425000 (Being 25000 Shares Issued @ $17 Each in cash & Such shares has no Par value) 2 June 15 Retained Earningd $120000 Dividend Payable $120000(Dividend Declared @1 Per shares issued)
Total shares issued = 25000+95000 = 120000
Dividend @ $1 = $1*120000 = $120000
3 July 10 Dividend Payable $120000 Cash $120000 (Dividend Paid in cash) 4 December 1 Cash (2000*$19) $38000 Common stock $38000 (2000 Shares issued @ $19 Per share in cash) 5 December 15 Retained Earnings $146400 Dividend Payable $146400 (Dividend Declared @ $1.2 per share on Total 122000 Shares (120000+2000)