E14-1 & E14-2

E14-1 On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the dividends nt following occurred. pr. 1 Issued 25,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. July 10 1 Dec. Issued 2,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. Instructions (a) Prepare the entries to record these transactions. (b) How are dividends and dividends payable reported in the financial statements pre- pared at December 31? E14-2 Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash divi- dends: 2016, $5,000; 2017, $12,000; and 2018, $28,000. ds to a stock Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2018, under part (b). ds E14-3 On January 1, 2017. Frontior stand