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-   -   Adjusting entry for income tax payable. Dividend distribution (https://www.askmehelpdesk.com/showthread.php?t=701112)

  • Sep 11, 2012, 04:46 AM
    bibi_baudelaire
    Adjusting entry for income tax payable. Dividend distribution
    Hi everyone I need your help to solve this two little problems, because I'm not sure I am right. Thank you very much

    1)
    The following unadjusted trial balance was taken from the books of BLAND Corporation on June 30, 2012.

    Accounts Payable
    € 3,300
    Accounts Receivable
    € 9,600
    Accumulated Depreciation - PPE
    € 23,500
    Accrued interest expense
    € 80
    Cash
    € 6,480
    Common Stock
    € 10,000
    Cost of Goods Sold
    € 11,300
    Dividends
    € 2,200
    Notes payable
    € 8,000
    Prepaid Insurance
    € 900
    Property, Plant and Equipment
    € 45,000
    Rent Expense
    € 800
    Retained Earnings
    € 11,000
    Salaries Expense
    € 12,800
    Sales revenue
    € 34,000
    Supplies
    € 1,600
    Unearned service revenue
    € 800

    Record the adjusting entry for:
    Income tax payable: € 3,200



    My question is, is this the right answer? If not, what should I do? :

    Income tax expense € 3,200
    Income tax payable € 3,200



    2) second question:
    Record in the general journal:
    Distribution of a 15% stock dividend (recorded at 3€ par value) on the € 192,000 common stock.

    So how can I calculate the amount of the dividends distributed? Is it right proceeding in this way? I don't think it is,, what tip can you give me? I don't understand. Thank you very much
    192,000 x 0.15= 28800
  • Sep 11, 2012, 05:24 AM
    paraclete
    It looks OK on the information you have available

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