Papke Payroll Service began 2009 with 1,000,000 authorized and 225,000 issued and outstanding $10 par common shares.
Question:
Papke Payroll Service began 2009 with 1,000,000 authorized and 225,000 issued and outstanding $10 par common shares. During 2009, Papke entered into the following transactions:
a. Declared a $0.40 per share cash dividend on March 10.
b. Paid the $0.40 per share dividend on April 10.
c. Purchased 8,000 common shares for the treasury at a cost of $24 each on May 2.
d. Sold 3,000 unissued common shares for $26 per share on June 9.
e. Declared a $0.55 per share cash dividend on August 10.
f. Paid the $0.55 per share dividend on September 10.
g. Declared and paid a 10 percent stock dividend on October 15 when the market price of the common stock was $28 per share.
h. Declared a $0.60 per share cash dividend on November 10.
i. Paid the $0.60 per share dividend on December 10.
Required:
1. Prepare journal entries for each of these transactions.
2. Determine the total amount of dividends (cash and stock) for the year.
3. Determine the effect on total assets and total stockholders' equity of these dividend transactions.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...
Step by Step Answer:
1 a Dividends 040 225000 90000 Dividends Payable 90000 b Dividends Payable 90000 Cash 90000 c Trea...View the full answer
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
