survivor company was formed on january 1, 2010 by selling and issuing 20,000 sha
ID: 2385014 • Letter: S
Question
survivor company was formed on january 1, 2010 by selling and issuing 20,000 shares of common stock at $ 15 per share share. on december 1, 2011, the company declared a cash dividend of $ 10,000 which will be paid in cash on january 15, 2012. the annual accounting period ends december 31. A. give the journal entry to record the sale and issuance of common stock on january 1,2010, for each of the following independent assumptions: 1. the common stock has $ 10 par value per share 2. the common stock has a stated value of $ 5 per share with no par value 3. the common stock has no par and no stated value A. give the journal entry to record the dividend declaration on 12/01/2011 b. give the journal entry to record the payment of the dividend on 01/15/2012Explanation / Answer
A.
1.
january 1, 2010
cash Debit 3,000,000
Common Stock, $10 par value Credit 2,000,000
paid in capital in excess of par value, common stock Credit 1,000,000
2.
january 1, 2010
cash Debit 3,000,000
Common stock, $5 par value Credit 1,000,000
paid in capital in excess of par value, common stock Credit 2,000,000
3.
january 1, 2010
Cash Debit 3,000,000
Common Stock, no-par value Credit 3,000,000
B.
12/1/2010
REtained earnings Debit 10,000
Common Dividends payable Credit 10,000
C.
January 15, 2011
Common Dividend Payable Debit 10,000
Cash Credit 10,000
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