jrwilliams13
Sep 24, 2009, 10:44 AM
On Jan 1, Molini Corp had 95000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
Apr1 issued 25000 additional shares of common stock for $17 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 2000 additional shares of common stock for $19 per share
15 declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on Dec 31
Instructions:
a) prepare the entries, if any, on each of the three dividend dates
b) how are the dividends and dividend payable reported in the financial statements prepared at Dec 31?
Apr1 issued 25000 additional shares of common stock for $17 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 2000 additional shares of common stock for $19 per share
15 declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on Dec 31
Instructions:
a) prepare the entries, if any, on each of the three dividend dates
b) how are the dividends and dividend payable reported in the financial statements prepared at Dec 31?