Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares Issued

image text in transcribed
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares Issued and outstanding. $ 2,000,000 -Paid in capital in excess of par value, common stock -Retained earnings.... .....400,000 900.000 $3,300,000 Total The Corporation completed the following transactions in 2021. 1-Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2- Mar. 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share. 5-Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6-Nov. 01, Distributed stock dividends declared on Sep. 30. 7-Nov. 15. The company implemented 5-for-1 stock split for the common stock Required: Prepare journal entries to record each of these transactions for 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions