Selected transactions of Dallas Corporation during 2016 are given below. Record them in the general journal.
Analyze: If the dividends declared on October 30 were to be paid on January 15, what balance would be reflected in the Dividends Payable account on December 31, 2016?
DATE TRANSACTIONS
Mar. 15 Filed the federal tax return for 2015. The total tax for the year was $180,000. Estimated tax deposits of $175,000 had been made during 2015, and on December 31, 2015, the accountant had accrued an additional liability of $4,000. Paid the tax due of $5,000.
Apr. 15 Paid first quarterly installment of $45,000 on 2016 estimated federal income tax.
May 30 Declared dividend of $0.10 per share on the 50,000 shares of common stock outstanding. The dividend is payable on June 30 to holders of record on June 15.
June 15 Paid second quarterly installment of $45,000 on 2016 estimated federal income tax.
30 Paid the dividend declared on May 30.
Sept. 15 Paid third quarterly installment of $45,000 on 2016 estimated federal income tax.
Oct. 30 Declared cash dividend of $0.10 per share on the 50,000 shares of common stock outstanding. The dividend is payable on December 1 to holders of record on November 15.
Dec. 1 Paid dividend declared on October 30.
15 Paid fourth quarterly installment of $45,000 on 2016 estimated federal income tax.
31 In completing the worksheet at the end of the year, the accountant estimated that the total income tax for 2016 was $175,000. The difference between this amount and the quarterly deposits is to be recorded as an adjustment.