On January 1, Pharoah Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $19 per share. June 15 Declared a cash dividend of $2 per share to stockholders of record on June 30. July 10 Paid the $2 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $3.00 per share to stockholders of record on December 31.

Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question

Business

Bentley Molina

28 March, 16:05

On January 1, Pharoah Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $19 per share. June 15 Declared a cash dividend of $2 per share to stockholders of record on June 30. July 10 Paid the $2 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $18 per share. 15 Declared a cash dividend on outstanding shares of $3.00 per share to stockholders of record on December 31.

Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Answers (1)

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Tamia Rush · Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Cash dividend Dr, $229,000

(91,500 + 23,000) * $2

To Dividend payable $229,000

(Being dividend declared is recorded)

2. Dividend payable Dr, $229,000

To Cash $229,000

(Being the payment of dividend is recorded)

3. Cash dividend Dr, $349,500

(91,500 + 23,000 + 2,000) * $3.00

To Dividend payable $349,500

(Being the dividend declared is recorded)