Question

Exercise 11-13 On January 1, Skysong, Inc. had 90,500 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. June 15 July 10 Dec. 1 15 Issued 21,000 additional shares of common stock for $19 per share. Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. Issued 2,500 additional shares of common stock for $18 per share. Declared a cash dividend on outstanding shares of $4.30 per share to stockholders of record on December 31 Prepare the entries, on each of the three dividend dates. If no antry is required, select "No Entry for the account titles and enter for the amounts Record journal entries in the order presented in the problem. Cred accountles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation De Credit

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
June 15	Cash dividend	111,500
	Dividend payable		111,500
	[(90,500+21,000)*$1]
July 10	Dividend payable	111,500
	Cash		111,500
Dec.15	Cash dividend	490,200
	Dividend payable		490,200
	[(90,500+21,000+2,500)*4.3]