Question

On January 1, Ayayai Corp. had 61,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 9,450 additional shares of common stock for $11 per share.

June 15 Declared a cash dividend of $1.50 per share to stockholders of record on

June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 4,200 additional shares of common stock for $11 per share.

Dec. 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31

(a)

Prepare the entries, if any, on each of the three dates that involved dividends. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,225.)

Date:                     Account Titles and Explanation                           Debit        Credit

June 15

July 10

Dec 15

Answer 1

Journal entry

Date	account titles and explanation	Debit	Credit
June 15	Cash dividend (61000+9450*1.5)	105675
	Dividend payable		105675
July 10	Dividend payable	105675
	Cash		105675
Dec 15	Cash dividend (74650*1.6)	119440
	Dividend payable		119440