Exercise 11-6 On January 1, Monty Corp. had 61,900 shares of no-par common stock
ID: 2599484 • Letter: E
Question
Exercise 11-6
On January 1, Monty Corp. had 61,900 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.
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 Account Titles and Explanation Debit Credit
Apr. 1 Issued 13,500 additional shares of common stock for $12 per share. June 15 Declared a cash dividend of $1.75 per share to stockholders of record on June 30. July 10 Paid the $1.75 cash dividend. Dec. 1 Issued 6,000 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.25 per share to stockholders of record on December 31.Explanation / Answer
Prepare the entries, if any, on each of the three dates that involved dividends.
Date accounts & explanation debit credit June 15 Dividend a/c (75400*1.75) 131950 Dividend payable a/c 131950 (To record dividend declared) July 10 Dividend payable a/c 131950 Cash a/c 131950 (To record dividend paid) Dec 15 Dividend a/c (81400*2.25) 183150 Dividend payable a/c 183150 (To record dividend declared)Related Questions
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