Question

On January 1, 2016 PT Sun had 50,000 shares, $5 par value per share, During the year, the following transactions ocurred. April June 1 15 July December December 10 1 15 Issued 10,000 additional shares of common stock for $11 per share. Declared a cash dividend of $1,50 per share to stockholders of record on June 30 Paid the $1.50 cash dividend. Issued 5,000 additional shares of common stock for $12 per share, Declared a cash dividend on outstanding shares of $1.75 per share to stockholders of record on December 31 Required: Record/journalize all transactions above.

Answer 1

Answer

--Journal entry

Date	Accounts title	Debit	Credit	Working
01-Apr	Cash	$110,000		[10000 shares x $ 11]
	Common Stock		$50,000	[10000 shares x $ 5 par]
	Paid in Capital in excess of Par - Common stock		$60,000	[10000 shares x $ 6]
15-Jun	Cash Dividend	$90,000		[(50000+10000) shares x $ 1.50]
	Cash Dividend payable		$90,000	[(50000+10000) shares x $ 1.50]
10-Jul	Cash Dividend payable	$90,000		[(50000+10000) shares x $ 1.50]
	Cash		$90,000	[(50000+10000) shares x $ 1.50]
01-Dec	Cash	$60,000		[5000 shares x $ 12]
	Common Stock		$25,000	[5000 shares x $ 5 par]
	Paid in Capital in excess of Par - Common stock		$35,000	[5000 shares x $ 7]
15-Dec	Cash Dividend	$113,750		[(60000 + 5000 shares) x $ 1.75]
	Cash Dividend payable		$113,750