Exercise 10-9 Record common stock, treesury stock, and cash dividends (L010-2, 1
ID: 2581215 • Letter: E
Question
Exercise 10-9 Record common stock, treesury stock, and cash dividends (L010-2, 10-4, 10-5) Power Dirive Corporation designs and produces a line of golt equipment and golf apparel,Power Drtive has 100,000 shares of common stock outstanding as of the beginming of 2018 Power Drive has the following transactions affecting stockholders' equity in 2018 March 1 Iissues 47,000 addtional shares of $1 par value common stock for $44 per share. May 10 Repurchases 4,200 shares of treasury stock for $47 per share June 1 Declares a cash dividend of $1.10 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1 October 21 Reissues 2,100 shares of treasury stock purchased on May 10 for $52 per share. Required Record each of these transactions. (f no entry is required for a particular transaction, select "No joumal entry required" in the first account field.)Explanation / Answer
Date General Journal Debit Credit 6/1/2018 Dividends 14280 dividends payable 14,280 (100,000+47000-4200)*.1 7/1/2018 Dividends payable 14,280 cash 14,280 10/21/2018 Cash (2100*52) 109200 Treasury stock (2100*47) 98700 paid in capital in excess of par-TS (2100*5) 10500
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