During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares
Question:
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2011. Share issue costs were $1,500. One year from the issue date (July 1, 2012), the corporation retired 10% of the shares for $39,500.
Required:
1. Prepare the journal entry to record the issuance of the shares.
2. Prepare the journal entry to record the declaration of a $2 per share dividend on December 1, 2011.
3. Prepare the journal entry to record the payment of the dividend on December 31, 2011.
4. Prepare the journal entry to record the retirement of the shares.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Requirement 1 Cash 385000 1500 383500 Common stock 30000 shares at 1 par per share 30000 Paidi...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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