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4 January, 10:07

On January 1, Pharoah Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $19 per share. June 15 Declared a cash dividend of $2 per share to stockholders of record on June 30. July 10 Paid the $2 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $3.00 per share to stockholders of record on December 31.

Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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  1. 4 January, 11:35
    0
    Answer and Explanation:

    The Journal entry is shown below:-

    1. Cash dividend Dr, $229,000

    (91,500 + 23,000) * $2

    To Dividend payable $229,000

    (Being dividend declared is recorded)

    2. Dividend payable Dr, $229,000

    To Cash $229,000

    (Being the payment of dividend is recorded)

    3. Cash dividend Dr, $349,500

    (91,500 + 23,000 + 2,000) * $3.00

    To Dividend payable $349,500

    (Being the dividend declared is recorded)
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Home » Business » On January 1, Pharoah Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr.
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