Ask Question
15 February, 02:25

The board of directors of Capstone Inc. declared a $0.80 per share cash dividend on its $2 par common stock. On the date of declaration, there were 53,000 shares authorized, 21,000 shares issued, and 4,000 shares held as treasury stock. What is the entry when the dividends are declared? Dividends: 8,800Cash: 8,800Dividends: 36,000Dividends Payable: 36,000Dividends: 8,800Dividends Payable: 8,800Dividends: 12,800Cash: 12,800

+4
Answers (1)
  1. 15 February, 04:36
    0
    Dividends: 13,600 Dividends Payable: 13,600

    Explanation:

    Dividends: 8,800Cash: 8,800

    Dividends: 36,000Dividends Payable: 36,000

    Dividends: 8,800Dividends Payable: 8,800

    Dividends: 12,800Cash: 12,800

    Share issued = 21000

    Shares in treasury stock = 4000

    Outstanding shares = 21000-4000 = 17000

    Dividend per share = $0.80

    Total Dividend = 17000 x $0.8

    Total Dividend = $13,600

    Transaction will be as follows

    Dr. Cr.

    Dividend $13,600

    Dividend Payable $13,600

    Data is Inconsistent with the options. According to given information the Journal Entry will be as above.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The board of directors of Capstone Inc. declared a $0.80 per share cash dividend on its $2 par common stock. On the date of declaration, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers