"2-15-2010

"2-15-2010 - EXERCISE 15-12 (a) 6/1 Retained...

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EXERCISE 15-12 (a) 6/1 Retained Earnings. ............................................... 6,000,000 Dividends Payable. ................................... 6,000,000 6/14 No entry on date of record. 6/30 Dividends Payable. ............................................... 6,000,000 Cash. ......................................................... 6,000,000 (b) If this were a liquidating dividend, the debit entry on the date of declaration would be to Additional Paid-in Capital rather than Retained Earnings. 1
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EXERCISE 15-15 (a) Retained Earnings. .................................................................... 117,000 Common Stock Dividend Distributable. ....................... 30,000 Paid-in Capital in Excess of Par. ................................... 87,000 (60,000 shares x 5% x $39 = $117,000) Common Stock Dividend Distributable. .................................. 30,000 Common Stock. ............................................................. 30,000 (b) No entry, memorandum note to indicate that par value is reduced to $2 and shares outstanding are now 300,000 (60,000 x 5). (c)
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"2-15-2010 - EXERCISE 15-12 (a) 6/1 Retained...

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