On January 1 st of this year, the stockholder\'s equity section in the Slate Gra
ID: 2540140 • Letter: O
Question
On January 1st of this year, the stockholder's equity section in the Slate Gravel Co. consisted of the following items:
Common Stock, $1 par value, 1 million shares
Authorized, 300,000 shares issued & outstanding $300,000
Paid in Capital in Excess of Par (APIC) 100,000
Retained earnings 500,000
Total Stockholder's equity.......... $900,000
Based on the information above, prepare journal entries in the spaces below to record the following transactions. Use good General Journal form, but you may omit explanations:
April 4 Issued 10,000 shares of stock at $15.00 per share.
June 20 The board of directors declared a $1.00 per share cash dividend payable July 15 to the July 10 stockholder's of record.
July 15 Paid the cash dividend previously declared.
July 22 Issued 5,000 shares of stock for $10.00 per share.
Dec. 18 The board of directors declared a $0.10 per share cash dividend payable January 5th, of next year to the January 1st,stockholder's of record.
Explanation / Answer
Answer
In the books of Slate Gravel Co.
Date
Debit
Credit
4-Apr
Cash (10,000 Shares *$15)
150,000
Common Stock (10,000 Shares *$1)
10,000
Paid-in-capital in excess of par (10,000 Shares *$14)
140,000
(Being shares issued at premium)
20-Jun
Dividend Expense (310,000 Shares * $1 each)
310,000
Dividend Payable
310,000
(Being dividend declared @$1 each)
15-Jul
Dividend Payable
310,000
Cash
310,000
(Being dividend declared paid)
22-Jul
Cash (5,000 Shares *$10)
50,000
Common Stock (5,000 Shares *$1)
5,000
Paid-in-capital in excess of par (5,000 Shares *$9)
45,000
(Being shares issued at premium)
18-Dec
Dividend Expense (315,000 Shares * $0.1 each)
31,500
Dividend Payable
31,500
(Being dividend declared @$0.1 each)
In the books of Slate Gravel Co.
Date
Debit
Credit
4-Apr
Cash (10,000 Shares *$15)
150,000
Common Stock (10,000 Shares *$1)
10,000
Paid-in-capital in excess of par (10,000 Shares *$14)
140,000
(Being shares issued at premium)
20-Jun
Dividend Expense (310,000 Shares * $1 each)
310,000
Dividend Payable
310,000
(Being dividend declared @$1 each)
15-Jul
Dividend Payable
310,000
Cash
310,000
(Being dividend declared paid)
22-Jul
Cash (5,000 Shares *$10)
50,000
Common Stock (5,000 Shares *$1)
5,000
Paid-in-capital in excess of par (5,000 Shares *$9)
45,000
(Being shares issued at premium)
18-Dec
Dividend Expense (315,000 Shares * $0.1 each)
31,500
Dividend Payable
31,500
(Being dividend declared @$0.1 each)
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