Can someone please help me with the following problem. I am looking for 3 journal entries. Does the 10,000 shares of treasury stock affect my entries or is it to be ignored?

Acme company declared a cash dividend of $2.25 per share. There are 1,000,000 shares authorized, 800,000 shares issued and 10,000 shares of treasury stock. The dividend was declared on Sept. 1, payable on October 9 to all stockholders of record on September 15. Prepare all journal entries necessary.

I need help with the following problem.

Acme has 30,000 shares of no-par $5 stated value common stock authorized. 9000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at 300,000. The stock is publicly traded for $30 per share. Record the transaction. I need journal entries please.


I think the answer is:

Land 300,000
Common Stock 45,000
PIC C/S 255,000

I need some help with the following question.
Joseks has 40,000 shares of no par $5 stated value common stock authorized. The company issues 50 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling for $60 per share. Record the transaction.

Madgo company has outstanding 100,000 shares of $5 par value common stock. The company declares a 10% stock dividend when the fair value of the stock is $45 per share. Prepare the journal entries for Madgo for BOTH the date of declaration and the date of distribution.

I came up with and need to know if its right

Retained Earning 450,000
Common Stock dividends distributable 10,000
paid in capital - common stock 440,000

Common Stock dividends distributable 10,000
common stock 10,000

Declared a cash dividend of $2.25 per share. There are 1,000,000 shares authorized. 800,000 shares issued and 10,000 shares of treasury stock. The dividend was declared on Sept. 1, payable on October 9 to all stockholders of record on September 15. Prepare all journal entries necessary.


I am completely lost - any help is appreciated.

First you have to calculate the amount of cash dividends. Take the cash dividend of $2,25 per share times 790,000 outstanding shares (800,000 shares issued minus 10,000 treasury stock) equals total amount of cash dividends.

There will be 2 journal entries; one on the declaration date and one on the payment date.

Journal entry 1:
Debit Retained Earnings for the total cash dividends
Credit Dividends Payable for the total amount of cash dividends

Journal entry 2:
Debit Dividends Payable for the total amount of cash dividends
Credit Cash for the total amount of cash dividends

Quote:

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Originally Posted by pready

First you have to calculate the amount of cash dividends. Take the cash dividend of $2,25 per share times 790,000 outstanding shares (800,000 shares issued minus 10,000 treasury stock) equals total amount of cash dividends.

There will be 2 journal entries; one on the declaration date and one on the payment date.

Journal entry 1:
Debit Retained Earnings for the total cash dividends
Credit Dividends Payable for the total amount of cash dividends

Journal entry 2:
Debit Dividends Payable for the total amount of cash dividends
Credit Cash for the total amount of cash dividends

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Thank you for your help. It all makes sense now. Any chance you can take a peek at my other posts? They are in regards to common stock. I think I have them correct but I am looking for some reassurance.

Thanks again