"Homework Quiz—8 02-17

"Homework Quiz—8 02-17

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Homework Quiz—8 Name Section Recall that: Cash + ∆ Other Assets = L + PIC + BRE + R – X + G – L – D Transaction 1. On 1/19/10 ABC Company’s corporate charter authorized 500,000 shares of $10 par value stock of which 300,000 shares had been issued (sold) and 20,000 shares were held as treasury stock. On 1/19, 2010 ABC declared a $1.20 per share cash dividend. 2. On 3/10/10 ABC paid the cash dividend declared in Transaction 1. 3. On 5/9/10 ABC Company declared a 5% (small) stock dividend. Assume the shares data in Transaction 1 continues to apply and that the market value of a share of ABC’s stock on 5/9/10 was $40. 4. On 6/29/10 ABC paid the stock dividend declared in Transaction 3. Transaction 1 Journal Entry DR Retained Earnings (280,000 x $1.20). ............................. 336,000 CR Dividends Payable. ................................................. 336,000 Transaction 2 Journal Entry DR Dividends Payable. .......................................................... 336,000 CR Cash. ....................................................................... 336,000 Transaction 3 Journal Entry
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This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue University-West Lafayette.

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"Homework Quiz—8 02-17

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