Question

Fowler Co.'s balance sheet showed the following at December 31, 2018: Common stock, $10 par $...

Fowler Co.'s balance sheet showed the following at December 31, 2018: Common stock, $10 par $ 120,000 Paid-in capital - excess of par 60,000 Retained earnings 24,000 A cash dividend is declared on December 31, 2018, and is payable on January 20, 2019, to shareholders of record on January 10, 2019. Required: 1. Prepare all appropriate journal entries, 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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Journal entry

Date account and explanation debit credit
Dec 31 Cash dividend 12000
Dividend payable 12000
(TO record dividend declared)
Jan 10 No entry
Jan 20 Dividend payable 12000
Cash 12000
(To record dividend paid)

2) Journal entry

Date account and explanation debit credit
Dec 31 Cash dividend 60000
Dividend payable 60000
(TO record dividend declared)
Jan 10 No entry
Jan 20 Dividend payable 60000
Cash 60000
(To record dividend paid)
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fowler Co.'s balance sheet showed the following at December 31, 2018: Common stock, $10 par $...
Fowler Co.'s balance sheet showed the following at December 31, 2018: Common stock, $10 par $ 107,000 Paid-in capital - excess of par 53,500 Retained earnings 21,400 A cash dividend is declared on December 31, 2018, and is payable on January 20, 2019, to shareholders of record on January 10, 2019. Required: 1. Prepare all appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share. Required 2. Prepare all appropriate journal entries, assuming a cash dividend...
The stockholders’ equity of Concord Inc. at December 31, 2013, appears below: Common stock, $15 par...
The stockholders’ equity of Concord Inc. at December 31, 2013, appears below: Common stock, $15 par value, 200,000 shares authorized,135,000 shares issued and outstanding 2,025,000 Paid-in capital in excess of par value 1,750,000 Retained earnings 2,375,000 During 2014, the following transactions occurred: May 10: Declared and issued a 10% common stock dividend when market value was $40 per share December 10: Declared a cash dividend of $2.50 per share to be paid in January 2015. December 31: Recognized net income...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par value, 100,000 shares authorized,50,000 shares issued and outstanding$1,250,000Paid-in capital in excess of par value, common stock 60,000Retained earnings 430,000Total stockholders' equity$1,740,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5...
Sheffield Corporation’s December 31, 2018 balance sheet showed the following: 7% preferred stock, $20 par value,...
Sheffield Corporation’s December 31, 2018 balance sheet showed the following: 7% preferred stock, $20 par value, cumulative, 14600 shares authorized; 9600 shares issued $ 192000 Common stock, $10 par value, 1010000 shares authorized; 985000 shares issued, 970000 shares outstanding 9850000 Paid-in capital in excess of par—preferred stock 28500 Paid-in capital in excess of par—common stock 11630000 Retained earnings 3760000 Treasury stock (15000 shares) 315000 Sheffield’s total paid-in capital was    A. $22015500.    B. $11750500.    C. $21385500.    D....
On January 1, 2018, Fascom had the following account balances in its shareholders' equity accounts. Common...
On January 1, 2018, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2018, Fascom Inc. had several transactions relating to common stock. 1. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10...
Skysong Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,...
Skysong Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $699,000 for 2018. The fair value of Kulikowski’s stock was $27 per share at December 31, 2018. Assume that the security is a trading security. Instructions (a)   Prepare the journal entries...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 1,000,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 370,000 Total stockholders' equity $ 1,440,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend...
On December 31, 2020, Cullumber Corporation had the following shareholders’ equity accounts: CULLUMBER CORPORATION Balance Sheet...
On December 31, 2020, Cullumber Corporation had the following shareholders’ equity accounts: CULLUMBER CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders’ equity      Common shares (unlimited number of shares authorized, 86,000 issued) $1,156,000      Retained earnings 560,000 Total shareholders’ equity $1,716,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. July 1 Announced a 3-for-2 stock split. The market price per share on the date...
The Not-too-tough company started its operation in 2018. Its balance sheet for December 31, 2018, showed...
The Not-too-tough company started its operation in 2018. Its balance sheet for December 31, 2018, showed the following account balances (there were no other accounts listed, numbers are in thousands): Assets Assets 2019 Cash and cash equivalents 400 Inventory 59 Accounts receivable 90 Property, plants, and equipment 100 Less: accumulated depreciation (10) Property and equipment – net 90 Prepaid rent 0 Total Assets 639 Liabilities and Equity Liabilities and Equity 2019 Accounts payable 50 Advance from customers 40 Wages payables...
On January 2, 2018, Sanborn Tobacco Inc. bought 10% of Jackson Industry’s capital stock for $104...
On January 2, 2018, Sanborn Tobacco Inc. bought 10% of Jackson Industry’s capital stock for $104 million. Jackson Industry’s net income for the year ended December 31, 2018, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2018. During 2018, Jackson declared a dividend of $74 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Sanborn sold the stock on January 2, 2019...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT