On January 1, Blue Spruce Corp. had 61,100 shares of no-par common stock issued
ID: 2581178 • Letter: O
Question
On January 1, Blue Spruce Corp. had 61,100 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Date
Account Titles and Explanation
Debit
Credit
Apr. 1 Issued 9,900 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.70 per share to stockholders of record on June 30. July 10 Paid the $1.70 cash dividend. Dec. 1 Issued 4,400 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.20 per share to stockholders of record on December 31.Explanation / Answer
a) Prepare the entries, if any, on each of the three dates that involved dividends. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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 decimal places, e.g. 1,225.)
Date accounts & explanation debit credit June 15 Dividend a/c (61100+9900)*1.7 120700 Dividend payable a/c 120700 (To record dividend declared) July 10 Dividend payable a/c 120700 Cash a/c 120700 (To record dividend paid) Dec 15 Dividend a/c (71000+4400)*2.2 165880 Dividend payable a/c 165880 (To record dividend declared)Related Questions
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