Question

On January 1, Graves Corporation had 60,000 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. Apr. 1 Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.5 per share to stockholders of record on June 30. July 10 Paid the $1.5 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.6 per share to stockholders of record on December 31.
(a) 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

Answer 1

Answer:

April 1 The company issued 9,000 stocks at $11 per stock

• Dr Cash account 99,000
• Cr Common Stock account 99,000

June 15 Cash dividends are declared $1.50 per stock

• Dr Retained Earnings account 103,500
• Cr Dividends Payable account 103,500

July 10 The company paid the dividends

• Dr Dividends Payable account 103.500
• Cr Cash Account 103,500

December 1 The company issued 4,000 stocks at $12 per stock

• Dr Cash account 48,000
• Cr Common Stock account 48,000

December 31 Cash dividends are declared $1.60 per stock

• Dr Retained Earnings account 116,800
• Cr Dividends Payable account 116,800