On January 1, Guillen Corporation had 93,000 shares of no-par common stock issue
ID: 2750169 • Letter: O
Question
On January 1, Guillen Corporation had 93,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $7 per share. During the year, the following occurred.
Apr.1Issued 20,500 additional shares of common stock for $18 per share.June15Declared a cash dividend of $2 per share to stockholders of record on June 30.July10Paid the $2 cash dividend.Dec.1Issued 2,000 additional shares of common stock for $18 per share.15Declared a cash dividend on outstanding shares of $3.50 per share to stockholders of record on December 31.
Prepare the entries, on each of the three dividend dates. (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
Date
Account Titles and Explanation
Debit
Credit
Apr. 1June 15July 10Dec. 1Dec. 15
Apr. 1June 15July 10Dec. 1Dec. 15
Apr. 1June 15July 10Dec. 1Dec. 15
Explanation / Answer
Apr-01 Cash Dr 369000 To Common Stock 369000 June Dividend Dr 227000 To Dividend payable 227000 Jul-15 Dividend Dr 397250 To cash 397250