Question

On January 1, Ayayai Corp. had 61,000 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 9,450 additional shares of common stock for $11 per share.
June 15		Declared a cash dividend of $1.50 per share to stockholders of record on June 30.
July 10		Paid the $1.50 cash dividend.
Dec. 1		Issued 4,200 additional shares of common stock for $11 per share.
Dec. 15		Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31.

Answer 1

Date	Accounts Name	Debit	Credit
1-Apr	Cash ( 9450 * 11 )	103950
	Common stock ( 9450*4)		37800
	paid in capital in excess of par - common (9450 *(11-4) )		66150
15-Jun	retained Earnings ( 61000+9450)*(1.5)	105675
	dividend payable		105675
10-Jul	Dividends payable	105675
	Cash		105675
1-Dec	Cash ( 4200 * 11 )	46200
	Common stock ( 4200*4)		16800
	paid in capital in excess of par - common (4200 *(11-4) )		29400
15-Dec	retained Earnings ( 61000+9450+4200)*(1.60)	119440
	dividend payable		119440