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Exercise 14-1 On January 1, Guillen Corporation had 94,500 shares of no-par comm

ID: 2490495 • Letter: E

Question

Exercise 14-1 On January 1, Guillen Corporation had 94,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $3 per share to stockholders of record on June 30. July 10 Paid the $3 cash dividend. Dec. 1 Issued 3,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $3.30 per share to stockholders of record on December 31. (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.)

Explanation / Answer

Date Account titles Debit $ Credit $ 1/4/2015 Cash $                             368,000.00 23000*16 Paid in capital - Par $                        138,000 23000*6 Paid in capital - Excess of Par $                        230,000 15/6/2015 Retained earnings $                             352,500.00 3*(94500+23000) Dividends payable $                        352,500 10/7/2015 Dividends payable $                             352,500.00 Cash $                        352,500 1/12/2015 Cash $                               57,000.00 19*3000 Paid in capital - Par $                          18,000 3000*6 Paid in capital - Excess of Par $                          39,000 15/12/2015 Retained earnings $                             397,650.00 3.3*(94500+23000+3000) Dividends payable $                        397,650 31/12/2015 Dividends payable $                             397,650.00 Cash $                        397,650

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