pter 11-Assignment Questions 1-2 (of 4) The following information applies to the

Question

pter 11-Assignment Questions 1-2 (of 4) The following information applies to the questions displayed below The annual report for Malibu Beachweer reported the following transactions affecting stockholders' equity a. Purchased $351000 of common stock now held in treasury b. Declared cash dividends in the amount of $260,500 c Paid the dividends in (b) d. Issued 110,000 new shares of $0.10 par value common shares for $2 per share. e. Closed the Dividends account value 10.00 points 2. Prepare journal entries to record each of these events (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of $351,000 common stock. Note: Enter debits before credits. Firefox automatically sends some data to Marilla n that ue

Explanation / Answer

A.

Treasury Stock (Dr.) 351,000

Cash (Cr.) 351,000

(Being $351,000 worth of stock purchased)

B.

Dividend Expense (Dr.) 260,500

Dividend Payable (Cr.) 260,500

(Being dividend declared)

C.

Dividend payable (Dr.) 260,500

Cash (Cr.) 260,500

(Being dividend declared now paid)

D.

Cash (Dr.) 220,000 (110,000*2)

Common stock (Cr.) 11,000 (110,000 shares @ $0.1)

Additional paid in capital (Cr.) 209,000 (110,000*$1.9)

(Being 110,000 shares issued @$2 per share, par value $0.1 per share)

E.

Dividend payable is already closed.

Statement of Profit & Loss (Dr.) 260,500

Dividend Expense (Cr.) 260,500

(Being dividend expense transferred to profit and loss statement)

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