Exercise 11-13 On January 1, Oriole Company had 95,500 shares of no-par common s
ID: 2582915 • Letter: E
Question
Exercise 11-13 On January 1, Oriole Company had 95,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $7 per share. During the year, the following occurred. Apr. 1 Issued 26,000 additional shares of common stock for $17 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 2,500 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $2.10 per share to stockholders of record on December 31 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.)Explanation / Answer
a.The following will be the required journal entries:
note: cash dividends is transferred to the debit of retained earnings account at the end of the year.
Date Account titles Debit Credit June 15 Cash dividends a/c $121,500 ..........To DIvidends payable a/c $121,500 (being dividends payable @$1 per share on (95,500 +26,000 shares)=>121,500 shares) July 1 Dividends payable a/c $121,500 .............To Cash a/c $121,500 (being dividends declared on June 15 now paid @$1 per share on 121,500 shares outstanding) Dec 15 Cash dividends a/c $260,400 .........To DIvidends payable a/c $260,400 (being dividends declared @$2.10 on (121,500 +2500 =>124,000 shares ) =>(124,000*$2.10=>$260,400)Related Questions
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