Question

5. (11 Points) Dawls Corporation reported stockholders’ equity on December 31 ofthe prior year as folows. Common stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued $2,500,000 Contributed capital in excess of par, common stock Retained earnings 1,000,000 3,000,000 Record the following selected transactions which occurred during the current year in the journal below: Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share. Mar. 9 Distribute the stock dividend. May 1 A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1 June 1 Paid the cash dividend. Aug. 20 Issued 1,000 additional shares for $10.50 each. Sept. 1 Issues 10,000 shares in exchange for land worth $225,000 when or stock was trading for $12.00 for share



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