Question

On January 1, Flounder Corp. had 61,500 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 11,700 additional shares of common stock for $12 per share.
June 15		Declared a cash dividend of $1.90 per share to stockholders of record on June 30.
July 10		Paid the $1.90 cash dividend.
Dec. 1		Issued 5,200 additional shares of common stock for $13 per share.
Dec. 15		Declared a cash dividend on outstanding shares of $2.30 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.) Date Account Titles and Explanation Debit Credit Apr. 1

Answer 1

'On April 1st 11,700 additional shares issued so, Total No. of shares ofs will be 61,500 shares + 11,700 shares 73,200 shares Junc isth $139,000 Dividends account... Debit) (73,200 * 1.90) $139,080 To Dividends payable ale.. credit July 10th Dividends payable alc ... debit $139,000 $ 139,080 To cash ale . ... credit on Decist 5200 additional share issued. Total No. ot ols share will become (73200+ 5200) = 78, 2,00 shares Debit $180320 Decisth Dividends account ... (78,400 * 2.30) $ 180,320 Credit To Dividends payable ale ...