WileyPLUS Problem 11-3 On January 1, Trear Corporation had 58,700 common shares
ID: 2585856 • Letter: W
Question
WileyPLUS Problem 11-3 On January 1, Trear Corporation had 58,700 common shares issued. During the year, the following transactions occurred Apr. 1 Issued 7,000 additional common shares for $11 per share. June 15 Declared a cash dividend of $1.83 per share to common shareholders of record on June 30, payable on July 10. July 10 Paid the $1.83 cash dividend Dec. 1 Issued 4,100 additional common shares for $13 per share Dec. 15 Declared a cash dividend of $2 per share to common shareholders of record on December 31, payable January 10. Prepare the entries, if any, for each of the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry Required" for the account titles and enter 0 for the amounts.)Explanation / Answer
Solution:
Journal Entries
Date
General Journal
Debit
Credit
Apr.1
Cash (7,000 shares x $11)
$77,000
Common Stock
$77,000
June.15
Retained Earnings (58700 + 7000 Shares)*1.83
$120,231
Cash Dividend Payable
$120,231
June.30
No entry is required on record date
July.10
Cash Dividend Payable
$120,231
Cash
$120,231
Dec.1
Cash (4100*13)
$53,300
Common Stock
$53,300
Dec.15
Retained Earnings (58700+7000+4100 Shares)*$2
$139,600
Cash Dividend Payable
$139,600
Dec.31
No entry is required on record date
In the “Statement of Change in Equity”, dividends of $259,831 (120,231+139,600) will be deducted from beginning retained earnings.
In Statement of Financial Position, Dividend Payable of $139,600 will be reported as Current Liability
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Date
General Journal
Debit
Credit
Apr.1
Cash (7,000 shares x $11)
$77,000
Common Stock
$77,000
June.15
Retained Earnings (58700 + 7000 Shares)*1.83
$120,231
Cash Dividend Payable
$120,231
June.30
No entry is required on record date
July.10
Cash Dividend Payable
$120,231
Cash
$120,231
Dec.1
Cash (4100*13)
$53,300
Common Stock
$53,300
Dec.15
Retained Earnings (58700+7000+4100 Shares)*$2
$139,600
Cash Dividend Payable
$139,600
Dec.31
No entry is required on record date
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