2010-11-01_044107_see - Ft x h s q wt v 4xhcd C d v q`d...

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Solutions Guide: Please reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as your own. On January 1, Armada Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 15,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $19 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. Prepare the entries, if any, on each of the three dividend dates. How are dividends and dividends payable reported in the financial statements prepared at December 31? (a) June 15 Retained Earnings (110,000 X $1) 110,000 Dividends Payable 110,000 July 10 Dividends Payable 110,000 Cash 110,000 Dec. 15 Retained Earnings (112,000 X $1.20) 134,400 Dividends Payable 134,400 (b) In the retained earnings statement, dividends of $244,400 will be deducted. In the
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2010-11-01_044107_see - Ft x h s q wt v 4xhcd C d v q`d...

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