is Question: 57 pts 4 2 of 8 (0 complete) his Test: 179 pts possible learbom Man
ID: 2545981 • Letter: I
Question
is Question: 57 pts 4 2 of 8 (0 complete) his Test: 179 pts possible learbom Manufacturing Co. completed the following transactions during 2018 (Cick the Iicon to view the transactions.) Read the requirements Requirement 1. Record the ransactions in Clearborn's general journal·(Record debits frst, then redit. Select te explanation on te last line ofte prnal entry required on the first line of the Accounts and Explanation column and leave the remaining Declared a $0.50 per share dividend on the 105,000 shares of $6 par value common stock outstanding The date of record is January 31, and the payment date is February 15 Debit Credit Date Accounts and Explanation Jan. 16 Feb. 15: Paid the cash dividends. Debit Feb 15 Choose from any list or enter any number in the input felds and then continue to the next question 888 4 8 4 5 6 3Explanation / Answer
Clearborn Date General Journal Debit Credit 2018 Amount in Amount in Jan-16 Cash dividend on common stock 52500 =105000*0.5 Cash dividend on preferred stock 4725 =900*105*5% Dividend Payable 57225 Feb-15 Dividend payable 57225 Cash 57225 To record the declaration & payment of dividend on common as well as preferred stock Jun-10 No Journal entry required for stock split. Only number of stock will double to 210000 Jul-30 No Journal entry required for declaration of stock dividends Aug-15 Retained earnings 315000 =210000*50%*3 Common stock 315000 To record the distribution of 50% stock dividends on common stock Note : since this is the large stock dividends, the par value of stock has been considered to calculate the common value of stock which is $3 after stock split Oct-26 Treasury stock 16000 =1600*10 Cash 16000 To record the purchase of treasury stock Nov-08 Cash 9600 =800*12 Treasury stock 8000 =800*10 Paid in capital from treasury stock 1600 =800*2 To record the issuance of treasury stock Nov-30 Cash 4900 Paid in capital from treasury stock 1600 Retained earnings 500 Treasury stock 7000 To record the issuance of treasury stock Retained earnings 186700 To record the transfer of Net Income to retained earnings Stock holder's Equity December 31, 2018 Capital stock Authorised 400000 shares of common stock, 1000 shares of preferred stock, Issued & paid up Common stock of 315000 at $3 par 945000 =105000*6+210000*50%*3 5% Non-cumulative Preferred stock of 900 at $105 par 94500 Total capital stock 1039500 Retained Earning 992275 Less : Treasury stock(100*10) 1000 Total stockholder's equity 2030775 Statement of Retained earnings Beginning Balance 1050000 Less : Dividend 57225 Less : Issuance of treasury stock at loss 500 Ending Balance 992275
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.