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Cash Dividends King Tut Corporation issued 19,000 shares of common stock, all of

ID: 2475571 • Letter: C

Question

Cash Dividends

King Tut Corporation issued 19,000 shares of common stock, all of the same class; 12,000 shares are outstanding and 7,000 shares are held as treasury stock. On December 1, 2013, King Tut's board of directors declares a cash dividend of $0.50 per share payable on December 15, 2013, to stockholders of record on December 10, 2013.

Required:

Prepare the appropriate journal entries for the (a) date of declaration, (b) date of record, and (c) date of payment. If no entry is required, type "No entry required" and leave the amount boxes blank.

(a)

Correct 2

Correct 3

Correct 4

Correct 5

(b)

Correct 7

Correct 8

Correct 9

Correct 10

(c)

Correct 12

Correct 13

Correct 14

Correct 15

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Prepare the appropriate journal entries for the (a) date of declaration, (b) date of record, and (c) date of payment. If no entry is required, type "No entry required" and leave the amount boxes blank.

(a)

Correct 2

Correct 3

Correct 4

Correct 5

(b)

Correct 7

Correct 8

Correct 9

Correct 10

(c)

Correct 12

Correct 13

Correct 14

Correct 15

Explanation / Answer

a) Date of declaration:

Dece. 1 .2013    Retained earnins             Dr                6,000

                               To Dividend payable                                      6,000

                    (Being dividend declared on 12,000 shares @ .50 per share)

b) On record date

                     No entry required

c) Date of payment

Dec.15.2013    Dividend payable                6,000

                               To    Cash                                 6,000

                   (Being dividend paid )

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