Exercise 11-5 On January 1, 2015, Tarow Corporation had 62,400 common shares, re
ID: 2567220 • Letter: E
Question
Exercise 11-5 On January 1, 2015, Tarow Corporation had 62,400 common shares, recorded at $468,000, and retained earnings of $780,000. During the year, the following transactions occurred Issued 3,900 common shares at $20 per share. Declared a cash dividend of $0.20 per share to common shareholders of record on June 30, payable on July 10. Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20, The shares were trading for $24 a share on August 21. $24 on September 5, and $25 on September 20. Issued 2,300 common shares at $25 per share. Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10. Apr. 1 June 15 Aug. 21 Nov. 1 Dec. 20 Record the above transactions for 2015. (Note: Closing entries are not required.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decinal places, e-9·5,275.) answers to ne Date Account Titles and Credit Apt 1 une 1s uly 10 Aug 21 Sept. 20 Nov. 1 Dec. 20 Open T accounts and post to the shareholder equity accounts journalized above. (Record entries in the order presented in the problem. Round answers to O decimal places, e.g. 5,275.) what is the number of common shares at the end of the year? Number of common shares Click if you would like to Show Work for this question:Explanation / Answer
(62400 + 3900 + 3315 + 2300)
Date Account Titles and Explanation Debit Credit Apr. 1 Cash (3900 x $20) 78000 Common shares 78000 June 15 Cash Dividends [$0.20 x (62400 + 3900)] 13260 Dividends payable 13260 July 10 Dividends payable 13260 Cash 13260 Aug. 21 Stock dividends (5% x 66300 x $24) 79560 Stock dividends distributable 79560 Sept. 20 Stock dividends distributable 79560 Common shares 79560 Nov. 1 Cash (2300 x $25) 57500 Common shares 57500 Dec. 20 Cash Dividend ($0.30 x 71915) 21575 Dividends payable 21575Related Questions
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