Question

CALCULATOR PULL SCREEN PRINTER VERSION 4 BACK Exercise 14-01 (Essay) On January 1, Guillen Corporation had 95,000 shares of no par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred Apr 1 June 15 July 10 Dec 15 Issued 25,000 additional shares of common stock for $17 per share Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the 51 cash dividend, sed 2,000 additional shares of common stock for $19 per share Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. (1) How are dividends and dividends payable reported in the financial statements prepared at December 317 Cif you would like to Show Work for this questioni con Work

Answer 1

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Guillen Corporation		Note
Number of shares on January 1	95,000.00	A
Add: Issued on April 1	25,000.00	B
Number of shares outstanding on April 1	120,000.00	C=A+B
Dividend per share declared on June 15	1.00	D
Dividend paid on July 10	120,000.00	E=C*D
Number of shares outstanding on April 1	120,000.00	See C
Add: Issued on Dec 1	2,000.00	F
Number of shares outstanding on Dec 1	122,000.00	G=C+F
Dividend per share declared on Dec 15	1.20	H
Dividend payable on Dec 31	146,400.00	I=G*H
Treatment/ Reporting
Total Dividend expense for the year	266,400.00	J= E+I
This amount will be shown in the retained earnings statement. It will be deducted from the retained earnings balance.
Dividend payable on Dec 31	146,400.00	See G
It is a current liability. It will be shown in Balance Sheet.