Question

Exercise 11-13

On January 1, Cheyenne Corp. had 97,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred.

Apr.	1		Issued 29,500 additional shares of common stock for $18 per share.
June	15		Declared a cash dividend of $2 per share to stockholders of record on June 30.
July	10		Paid the $2 cash dividend.
Dec.	1		Issued 3,000 additional shares of common stock for $18 per share.
	15		Declared a cash dividend on outstanding shares of $1.50 per share to stockholders of record on December 31.

a. Prepare the entries, on each of the three dividend dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

		Debit	Credit
June 15	Cash Dividends	254000		=(97500+29500)*2
	Dividends Payable		254000
July 10	Dividends Payable	254000
	Cash		254000
Dec 15	Cash Dividends	195000		=(97500+29500+3000)*1.50
	Dividends Payable		195000