Exercise 11-13 On January 1, Monty Corp. had 97,500 shares of no-par common stoc

Question

Exercise 11-13 On January 1, Monty Corp. had 97,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following Apr. Issued 22,500 additional shares of common stock for $18 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,500 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $4.90 per share to stockholders of record on December 31 Prepare the entries on each of the three dividend dates. If no entry is require·select 'No Entry for the accou t tit es and enter 0 fort e amounts Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Journal entries :

Date accounts & explanation debit credit Apr 1 Cash a/c (22500*18) 405000 Common stock (22500*6) 135000 Paid in capital in excess of stated value 270000 June 15 Dividend a/c 120000 Dividend payable a/c 120000 June 30 No entry July 10 Dividend payable a/c 120000 Cash a/c 120000 Dec 1 Cash a/c (1500*18) 27000 Common stock a/c (1500*6) 9000 Paid in capital in excess of stated value-common stock 18000 dec 15 Dividend a/c 663950 dividend payable 663950 Dec 31 No entry

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