Exercise 11-13 On January 1, Concord Corporation had 90,000 shares of no-par com
ID: 2580733 • Letter: E
Question
Exercise 11-13 On January 1, Concord Corporation had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
Apr.1Issued 25,000 additional shares of common stock for $17 per share.June15Declared a cash dividend of $1 per share to stockholders of record on June 30.July10Paid the $1 cash dividend.Dec.1Issued 2,500 additional shares of common stock for $20 per share.15Declared a cash dividend on outstanding shares of $2.10 per share to stockholders of record on December 31.
(a)
Prepare the entries, on each of the three dividend dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the 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
Date
Account Titles and Explanation
Debit
Credit
Apr. 1June 15July 10Dec. 1Dec. 15
Apr. 1June 15July 10Dec. 1Dec. 15
Apr. 1June 15July 10Dec. 1Dec. 15
Explanation / Answer
a.the following will be the required journal entries:
Date Account titles Debit Credit Apr 1 Cash a/c.....(25,000 *$17) $425,000 ......To Additional paid in capital a/c..(25,000*$12) $300,000 .......TO Common stock a/c....(25,000*$5) $125,000 (being 25,000 shares issued for $17 , but par value is $5, => premium on issue is ($17 - $5 =.$12) June 15 Retained earnings a/c $115,000 .............To Dividends payable a/c $115,000 (being $1 per share dividend declared, total shares outstanding = 90,000 +25,000 =>115,000 shares * $1 per share =>$115,000) July 10 Dividends payable a/c $115,000 . ...........To Cash a/c $115,000 (being dividends paid in cash) Dec 1 Cash a/c ......(2,500 shares * $20) $50,000 .........To additional paid in capital a/c....($15*2,500) $37,500 ........To Common stock a/c ($5 *2,500) $12,500 dec 15 Retained earnings a/c....(117,500 *$2.10) $246,750 .............To Dividends payable a/c $246,750 (being dividends to be paid @$2.10 per share on (90,000 +25,000 +2,500)shares =>117,500 shares)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.