Question

On January 1, Martinez Corp. had 61,800 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 13,050 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.60 per share to stockholders of record on June 30.
July 10 Paid the $1.60 cash dividend.
Dec. 1 Issued 5,800 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

(a) Prepare the entries, if any, on each of the three dates that involved dividends.

Answer 1

Answer:

The entries are prepared in a tabular form in the explanation section below

Explanation:

From the example, the first step to take is to prepare he entries, if any, on each of the three dates that involved dividends.

Date          Account titles and explanation   Debit          Credit

June 15               Cash Dividends                 $119,760

                         Dividends Payable                                 $119,760

July 10               Dividends Payable             $119,760

                          Cash                                                     $119,760

Dec. 15               Cash Dividends                $161,300

                          Dividends Payable                              $161,300