https:/edugen. wileyplus.com/edugen/student/mainfr.uni Weygandt, Financial Accou
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https:/edugen. wileyplus.com/edugen/student/mainfr.uni Weygandt, Financial Accounting: IFRS, 3e actice Assignment Gradebook ORION Downloadable eTextbook nment Exercise 11-13 On January 1, Chevon Enterprises SA had 94,400 no-par ordinary shares issued and outstanding. The shares have a stated value of €7 per share. During the year, the following occurred. Apr. 1 Issued 28,200 additional ordinary shares for 16 per share. July 10 Paid the C1.88 cash dividend. Dec. 1 Issued 2,400 additional ordinary shares for 19 per share to shareholders of record on June 30. 15 Declared a cash dividend on outstanding shares of €1.28 per share to shareholders of record on December 3. Prepare the entries, f any, on each of the three dividend dates. (Credit when amount is entered. Do not indent manually,) account titles are automatically indented Date Account Titles and Explanation Debit Credit Question Attempts: 0 of 15 used SAVE FOR LATER SUIMIT ANSWER Inc. All Rights Reserved. A Division of 2ohn Wiley&Sons.; InsExplanation / Answer
Chevon Enterprises SA
Entries on dividend dates are as follows,
Date
Account Titles and Explanation
Debit
Credit
1-Apr
Cash
€451,200
Common Stock
€451,200
(To record issue of 28,200 shares at €16 per share)
15-Jun
Dividends
€230,488
Dividends Payable
€230,488
(To record dividends declared on 122,600 shares (94,400 + 28,200) at €1.88 per share)
10-Jul
Dividends Payable
€230,488
Cash
€230,488
(To record payment of dividends)
1-Dec
Cash
€45,600
Common Stock
€45,600
(To record issue of 2,400 shares at €19 per share)
15-Dec
Dividends
€160,000
Dividends Payable
€160,000
(To record dividends declared on 125,000 shares (94,400 + 28,200 + 2,400) at €1.28 per share)
Note:
Dividends account is closed to retained earnings account and the balance in retained earnings account would be reduced by €390,488 (230,488 + 160,000). The Dividends Payable account with balance of €160,000 is shown as a current liability in the balance sheet.
Date
Account Titles and Explanation
Debit
Credit
1-Apr
Cash
€451,200
Common Stock
€451,200
(To record issue of 28,200 shares at €16 per share)
15-Jun
Dividends
€230,488
Dividends Payable
€230,488
(To record dividends declared on 122,600 shares (94,400 + 28,200) at €1.88 per share)
10-Jul
Dividends Payable
€230,488
Cash
€230,488
(To record payment of dividends)
1-Dec
Cash
€45,600
Common Stock
€45,600
(To record issue of 2,400 shares at €19 per share)
15-Dec
Dividends
€160,000
Dividends Payable
€160,000
(To record dividends declared on 125,000 shares (94,400 + 28,200 + 2,400) at €1.28 per share)
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