CALCULATOR STANDARD VIEW PRINTER VERSION 4 BACK Brief Exercise 11-5 Martinez Cor

Question

CALCULATOR STANDARD VIEW PRINTER VERSION 4 BACK Brief Exercise 11-5 Martinez Corp. has 7,900 shares of common stock outstanding. It declares a $5 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL SAVE FOR LATER SUBMIT ANSWER Question Attempts: O of 2 used

Explanation / Answer

1)11-5

Declaration Date:Nov 1

Dr.Dividend $39500

Cr.Dividend payable $39500

dividend accounts are closed off to retained earnings account.

Record Date:Dec1 NO ENTRY

The dividend is paid on December 31.
Dr Dividend payable $39500
Cr Cash $39500

2)11-7

(a) increase liabilities, decrease assets and stock holders equity
(b) decrease assets, decrease liabilities
(c) no effect (just recategorises items within equity)
(d) and (e) - no effects

3)11-2

JUNE 12th

Dr Cash $309375
Cr Common stock $82500
Cr Paid-in Capital in Excess of Par Value - Common stock $226875

JULY 11th

Dr Cash $369150
Cr Preferred stock $355350
Cr Paid-in Capital in Excess of Par Value - Preferred stock $13800

Nov 28th

Dr Treasury stock $8450
Cr Cash $8450

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