On January 1 Weiss Corporation had 75,000 shares of Common stock issued and outs

Question

On January 1 Weiss Corporation had 75,000 shares of Common stock issued and outstanding. The stock has a par value of $5 per share. During the year, the following transactions occurred.

Apr. 1          Issued 5,000 additional shares of common stock for$11 per share.

June 15       Declared a cash dividend of $1.50 per share to stockholders of record on June 30.

July 10         Paid the $1.50 Cash dividend.

Dec 1           Issued 3,000 additional shares of common stock for $13 per share.

Dec 15         Declared a cash dividend on outstanding shares of $1.80 per share to stockholders of record on December 31.

Instructions:

Journalize the transactions

Explanation / Answer

Solution:

Date Journal Debit Credit Apr-01 Cash            55,000 Common Stock -            25,000 Additional Paid in Capital -            30,000 Jun-15 Retained Earnings - $ 1.50 * 80,000 share          120,000 Dividend payable          120,000 Jul-10 Dividend payable          120,000 Cash          120,000 Dec-01 Cash            65,000 Common Stock -            15,000 Additional Paid in Capital -            40,000 Dec-15 Retained Earnings - $ 1.80 * 83,000 shares          149,400 Dividend payable          149,400

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