On January 1, Guillen 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 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 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 amount is entered. Do not indent manually.)

Question

Business

Brenden Barnes

4 August, 05:54

On January 1, Guillen 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 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 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 amount is entered. Do not indent manually.)

+5

Answers (1)

Know the Answer?

Vanessa Stuart · Answer 1

Apr. 1 Issued 20,000 additional shares of common stock for $16 per share.

Dr Cash 320,000 ( = 20,000 x $16)

Cr Common stock 320,000

June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.

Dr Retained earnings 42,875 ( = 42,875 x $1)

Cr Dividends payable 42,875

July 10 Paid the $1 cash dividend.

Dr Dividends payable 42,875

Cr Cash 42,875

Dec. 1 Issued 1,000 additional shares of common stock for $20 per share.

Dr Cash 20,000 ( = 1,000 x $20)

Cr Common stock 20,000

Dec. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.

Dr Retained earnings 179,887.50 ( = 43,875 stocks x $4.10)

Cr Dividends payable 179,887.50