Question

Problem 2 The stockholders' equity section of Ellis Corporation's balance sheet at December 31, 2017, appears below: Stockholders' equity Paid-in capital Common stock, $1 par value, 1,000,000 shares authorized; 300,000 issued and outstanding Paid-in capital in excess of par $300,000 1.500,000 1,800,000 600.000 $2,400,000 Total paid-in capital Retained earmings Total stockholders' equity As of December 31, 2017, what was the average issuance price for Common Stock? Show calculation. On June 1, the company issued 4,000 shares of Common Stock for $10 per share (cash). Prepare the journal entry for the March 31 transaction Debit Credit Titles Date On Jul 1, 2018, he Boa d of Directors declared a $0.60 per share dividend for common shareholders of record on July 15 aad payabla on August 1. (Hint: include shares issued on June 1) Prepare the journal entries for July 1 and August 1 below Credit Debit Titles Date

Answer 1

As of is Dec 31, 2017 Average issue price $ 300000 + $ 1500000 300000 shares = 6/Share. Debit credit June ist Cash /Bank common stock. Additional paid in capital 440000 $40000 $36000 July 1st $182400 Retained earnings. $182400 Dividend payable [304000 x 0.6] August 1st Dividend payable cash/Bank $ 182400 $182uoo stockholder's equity section Common stock paid in capital $304000 Additional paid in capital Paid in capital in excess of par-common $1536000 Total paid in Capital 1840000 Retained earnings 667600 Total stockholder's equity 2507600 Average issue potce as of 31/12/18 18400000 304000 shares - 6.055 ( share, 10