Fowler Co.s balance sheet showed the following at December 31,
2011
Retained earnings 20,000
Required:
TUTORIAL PREVIEW
Common stock, $10 par $100,000
Paid-in capital – excess of par 50,000Retained earnings 20,000
A cash dividend is declared on December 31, 2011, and is payable
on January 20, 2012, to shareholders of record on January 10, 2012.
Required:
(1) Prepare all appropriate journal entries (in proper format),
assuming a cash dividend in the amount of $1.00 per share. (2.) Prepare all appropriate journal entries, assuming a
cash dividend in the amount of $5.00 per share.
(1.)
December 31, 2011
Retained earnings [($1 x ($100,000/$10)] 10,000
Cash dividends payable 10,000
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