Answer:
No. of shares outstanding = A
Par Value (at $5) = B
Additional Paid in capital in excess of Par = C
Dividend = D
A B(A*$5) C D
Jan 1 balance 90,500 $452,500 $0
shares
Add: Issued Apr 1 21,000 $105,000 $294000
shares
June 30 Balance 111,500 $557,500 $294,000 $111,500
shares [111,500 shares x $1]
Add: Dec 1 Issued 2,500
shares $12,500 $32,500
Dec 31 Balance 114,000 $570,000 $326,500 $490,200
[114,000 shares x $4.3]
Journal Entries based on above
Date Accounts Titles Debit Credit
15-Jun Dividends $111,500
Dividends payable $111,500
10-Jun Cash $111,500
Dividends $111,500
15-Dec Dividends $490,200
Dividends payable $490,200
