Answer:
Journal Entries :
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Explanation:
1.
Common Stocks $29,400 (debit)
Cash $29,400 (credit)
Purchase Cost = 300 shares × $98 = $29,400
2.
Dividends Declared $174,300 (debit)
Shareholders for Dividends $174,300 (credit)
Dividend Calculation = (8600 - 300) × $21 = $174,300
<em>Note : Recognize the Liability : Shareholders for Dividends and recognise the Equity Element : Dividends Declared</em>
3.
Shareholders for Dividends $174,300 (debit)
Cash $174,300 (credit)
<em>Note : De-recognize the Liability : Shareholders for Dividends and De -recognize the Assets of Cash.</em>
4.
Cash $30,600 (debit)
Common Stocks $30,600 (credit)
Proceeds = 300 shares × $102 = $30,600
5.
Common Stocks $48,300 (debit)
Cash $48,300 (credit)
Purchase Cost = 460 shares × $105 = $48,300
6.
Cash $29,100 (debit)
Common Stocks $29,100 (credit)
Proceeds = 300 shares × $97 = $29,100
