Question

On January 1, 2017 PT Megaworld had 50,000 shares, $4 par value per share, during the year, the following transactions occurred. Apr Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of S1,50 per share to stockholders of record on June 30 July 10 Paid the $1.50 cash dividend. December Issued 4,000 additional shares of common stock for $12 per share, December 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31 Required: Record all transactions above.

Answer 1

		Debit	Credit
Apr. 1	Cash	99000		=9000*11
	Common Stock		36000	=9000*4
	Paid in capital in excess of par-Common Stock		63000
June 15	Cash Dividends	88500		=(50000+9000)*1.5
	Dividends payable		88500
July 10	Dividends payable	88500
	Cash		88500
Dec 1	Cash	48000		=4000*12
	Common Stock		16000	=4000*4
	Paid in capital in excess of par-Common Stock		32000
Dec 15	Cash Dividends	100800		=(50000+9000+4000)*1.6
	Dividends payable		100800