E11-13 On January 1, Guillen 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 25,000 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.
15 Declared
a cash dividend on outstanding shares of $1.20 per share to stockholders of
record on December 31.
Instructions
a)
Prepare the
entries, if any, on each of the three dividend dates.
b)
How are
dividends and dividends payable reported in the financial statements prepared at
December 31?
TUTORIAL PREVIEW
(a) June 15 Retained Earnings (120,000 X $1) 120,000
Dividends Payable 120,000
File name: E11-13 Guillen Corporation.doc File type: .doc PRICE: $6
