Answer:
cash 447,200 debit
common stock 43,000 credit
additional paid-in 404,200 credit
-- to record issuance of stocks --
dividends 94,600 debit
dividends payable 94,600 credit
-- to reocrd declaration of dividends --
dividends payable 94,600 debits
cash 94,600 credits
-- to record payment of cash dividends--
Explanation:
issuance of share:
43,000 x 1 = 43,000 common stock
cash procced 447,200 (450,000 - 2,800 flotation cost)
addition paid in 404,200 (difference between common stokc and procceds
dividends entries
dividends: 43,000 x 2.2 = 94,600 dividends
when declaringwe use a payable account
at payment date we write-off the payable and decrease cash.
