contestada

court casuals has 200,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year. may 18 issues 24,000 additional shares of $1 par value common stock for $40 per share. may 31 purchases 6,000 shares of treasury stock for $44 per share. july 1 declares a cash dividend of $1 per share to all stockholders of record on july 15. hint: dividends are not paid on treasury stock. july 31 pays the cash dividend declared on july 1. august 10 resells 2,200 shares of treasury stock purchased on may 31 for $48 per share.

Respuesta :

Be careful to recognize a Liability - Shareholders for Dividends when dividends are declared.

May 18

Cash $1,032,000 (debit)

Common Stock $1,032,000 (credit)

May 31

Treasury Stock $210,000 (debit)

Cash $210,000  (credit)

July 1

Dividend Declared $438,000 (debit)

Shareholders for Dividends $438,000 (credit)

Dividend = (200,000+24,000-5,000)×$2 = $438,000

July 31

Shareholders for Dividends $438,000 (debit)

Cash  $438,000 (credit)

August 10

Cash $110,000 (debit)

Treasury Stock  $110,000 (credit)

A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments.

To know more about dividend refer:

https://brainly.com/question/16014276

#SPJ4

Otras preguntas