Chap11wildtextbook

2 the number of shares issued × the par value per

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Unformatted text preview: 2. The number of shares issued × the par value per share in the Common Stock account. 3. The remainder is assigned to Paid-In Capital in Excess of Par, Common Stock . Issuing Stock for Noncash Assets Par Value Stock On September 1, Matrix, Inc. issued 100,000 shares of $2 par value stock for land valued at $2,500,000. Let’s record this transaction. 11-9 Issuing Stock for Noncash Assets Sept. 1 Land 2,500,000 Common stock, $2 par value 200,000 Paid-In Capital in Excess of Par Value 2,300,000 Common Stock Exchanged 100,000 common shares for land Par Value Stock On September 1, Matrix, Inc. issued 100,000 shares of $2 par value stock for land valued at $2,500,000. Let’s record this transaction. 11-10 To pay a cash dividend the corporation must have: 1. A sufficient balance in retained earnings and 2. The cash necessary to pay the dividend. Cash Dividend Types and Frequency 75% 22% 0% 20% 40% 60% 80% 100% Common Preferred Cash Dividends 11-11 Three important dates Date of Declaration Record liability for dividend. D i v i d e n d s Date of Record No entry required. Date of Payment Record payment of cash to stockholders. Cash Dividends 11-12 Date of Declaration Record liability for dividend. D i v i d e n d s On January 19, a $1 per share cash dividend is declared on Dana, Inc.’s 10,000 common shares outstanding. The dividend will be paid on March 19 to stockholders of record on February 19. Entries for Cash Dividends Dr Cr Jan. 19 Retained earnings (Dividends) 10,000 Common dividend payable 10,000 Declared $1 per share cash dividend 11-13 Date of Record No entry required. Entries for Cash Dividends On January 19, a $1 per share cash dividend is declared on Dana, Inc.’s 10,000 common shares outstanding. The dividend will be paid on March 19 to stockholders of record on February 19. No entry required on February 19. 11-14 Date of Payment Record payment of cash to stockholders. Entries for Cash Dividends On January 19, a $1 per share cash dividend is declared on Dana, Inc.’s 10,000 common shares outstanding....
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2 The number of shares issued × the par value per share in...

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