Exercise 11-6 On January 1, Tellier Corporation had 63,900 shares of no-par comm

Question

Exercise 11-6

On January 1, Tellier Corporation had 63,900 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 12,870 additional shares of common stock for $11 per share.

June 15 Declared a cash dividend of $1.80 per share to stockholders of record on June 30.

July 10 Paid the $1.80 cash dividend.

Dec. 1 Issued 6,480 additional shares of common stock for $13 per share.

Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

Prepare the journal entries, if any, on each of the three dates that involved dividends.

Explanation / Answer

Journal Entries in Teller Corporation Book Date Account Titles and Explanations Debit Credit Apr. 1 Cash account $       1,41,669 Common Stock account $       1,41,669 (Issue of shares 12870 shares @ $ 11 per share) June.15 Dividend account $       1,38,186 Dividend Payable account $       1,38,186 (declaration of dividend @ $ 1.80 per share for 76770 shares) Jul-10 Dividend Payable account $       1,38,186 Cash $       1,38,186 (Payment of dividend in cash) Dec.1 Cash account $           84,240 Common Stock account $           84,240 (Issue of shares 6480 shares @ $ 13 per share) Dec.15 Dividend account $       1,66,500 Dividend Payable account $       1,66,500 (declaration of dividend @ $ 2 per share for 83250 shares) Workings No of shares Beginning 63900 Issue on Apr .1 12870 Number of shares on June.30 76770 Issue on Dec.1 6480 Number of shares on Dec 30 83250

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