On Jarnuary 1, Indigo Corporation had 53,000 shares of no-par common stock issue

Question

On Jarnuary 1, Indigo Corporation had 53,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $1 per share. During the year, the fellowing transactions ocurred. stated Apssued 18,430 additional sharns of common stock far $13 per share. luna 15 Declared a cash dividend af $1.50 per share to stackholders of recard on lune 30. uly 10 Paid the $1.50 cash dividend. Dec. 1 ssued 8,200 additional shares of common stock for $13 per share. Dec. 15 Declared a cash dividend on outstanding shares of 1.90 per share to stockholders of record on December 31 Record journal elrees an be order preserted in the problem Credit account titles are dutornatn lly dented wher' amount as entered. 0 not in ert manually. To entry 1s Prepare the erties it any on each of the unee dates that nvolved dividends. required, select "No Entry" for the accouut tiles and enter 0 for tre amounts. Round answers to 0 decinial places, e.g. 1,225.) a Date Account Titles and Explanation Debit

Explanation / Answer

Date Account titles and explanation Debit Credit June 15 Cash Dividends(81,450 × $1.50) $122,175 Dividends Payable $122,175 July 10 Dividends Payable $122,175 Cash $122,175 Dec. 15 Cash Dividends(89,650 × $1.90) $170,335 Dividends Payable $170,335

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