Question

CALCULATOR PRINTER VERSION BACK NE Exercise 11-13 On January 1, Novak Corp. had 99,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 June 15 July 10 Dec. 1 15 Issued 25,500 additional shares of common stock for $17 per share. Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. Issued 3,000 additional shares of common stock for $19 per share. Declared a cash dividend on outstanding shares of $4.00 per share to stockholders of record on December 31. (a)

Answer 1

Credit Journal entry Date Accounts and Explanation Apr1 Cash Common stock To record issue of common stock Debit $433,500 $433,500 June 15 $ 25,500 Dividends Dividends payable To record dividend declare $ 25,500 July 10 $ 25,500 Dividends payable Cash To record divident paid $ 25,500 Dec 1 $ 57,000 Cash Common stock To record issue of common stock $ 57,000 Dec 15 $114,000 Dividends Dividends payable To record dividend declare $ 114,000

• General entry is the recording of financial transactions of an entity.
• The entries are related to issue of common stock and declaration and payments of dividend.