Instructions prepare the journal entries that should

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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
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InstructionsPrepare the journal entries that should be made by Fleming Corporation on the dates indicatedbelow:September 15, 2017November 1, 2017October 1, 2017November 15, 2017October 15, 2017November 30, 2017Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 12, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPAPC: Problem Solving, IMA: FSASolution 234(12–15 min.)9/15/17Cash Dividends ...................................................................80,000*Dividends Payable......................................................80,000(To record declaration of dividends in arrears and the current year’s preferred dividend)(*Pref. par val. div. % 2 yrs.)10/1/17(No entry required)10/15/17Dividends Payable...............................................................80,000Cash ..........................................................................80,000(To record payment of cash preferred dividend)11/1/17Cash Dividends....................................................................200,000*Dividends Payable......................................................200,000(To record declaration of cash dividend on common stock)*(Com. sh. out. div./sh.)11/15/17(No entry required)11/30/17Dividends Payable...............................................................200,000Cash ..........................................................................200,000(To record payment of common cash dividends)
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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
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Ex. 235On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued andoutstanding. The stock has a stated value of $5 per share. During the year, the followingtransactions occurred:Apr.1Issued 10,000 additional shares of common stock for $10 per share.June15Declared a cash dividend of $1.00 per share to stockholders of record on June 30.July10Paid the $1.00 cash dividend.Dec.1Issued 4,000 additional shares of common stock for $12 per share.15Declared a cash dividend on outstanding shares of $1.00 per share to stockholdersof record on December 31.Instructions(a)Prepare the entries, if any, on each of the three dates that involved dividends.(b)How are dividends and dividends payable reported in the financial statements prepared atDecember 31?Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 7, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPAPC: Problem Solving, IMA: FSASolution 235(7 min.)(a)June 15Cash Dividends..............................................................70,000a(70,000* $1.00)Dividends Payable.................................................70,000*60,000 shares + 10,000 sharesa(Beg. sh. out. + sh. iss.) div./sh.July10Dividends Payable.........................................................70,000 Cash......................................................................70,000Dec. 15Cash Dividends..............................................................74,000b(74,000** $1.00)Dividends Payable.................................................74,000**70,000 shares + 4,000 sharesb(Beg. sh. + Apr. sh. iss. + Dec. sh. iss.) div./sh.(b)In the retained earnings statement, dividends of $144,000 will be deducted. In the balancesheet, Dividends Payable of $74,000 will be reported as a current liability.
Ex. 236On October 31 the stockholders' equity section of Eaton Company's balance sheet consists of common stock $600,000 and retained earnings $400,000. Eaton is considering the following twocourses of action: (1) declaring a 10% stock dividend on the 60,000 $10 par value shares outstanding or (2) affecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share.InstructionsPrepare a tabular summary of the effects of the alternative actions on the company'sstockholders' equity and outstanding shares. Use these column headings: Before Action, AfterStock Dividend, and After Stock Split.

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