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IgorC [24]
4 years ago
15

On January 1, Martinez Corp. had 61,800 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 13,050 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.60 per share to stockholders of record on June 30.
July 10 Paid the $1.60 cash dividend.
Dec. 1 Issued 5,800 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

(a) Prepare the entries, if any, on each of the three dates that involved dividends.
Business
1 answer:
vekshin14 years ago
4 0

Answer:

<em>The entries are prepared in a tabular form in the explanation section below</em>

Explanation:

<em>From the example, the first step to take is to prepare he entries, if any, on each of the three dates that involved dividends.</em>

<em>Date          Account titles and explanation   Debit          Credit</em>

<em>June 15               Cash Dividends                 $119,760 </em>

<em>                          Dividends Payable                                 $119,760</em>

<em>July 10               Dividends Payable             $119,760</em>

<em>                           Cash                                                     $119,760</em>

<em>Dec. 15               Cash Dividends                $161,300</em>

<em>                           Dividends Payable                              $161,300</em>

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