Exercise 14-1 On January 1, Guillen Corporation had 91,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred. Apr. 1 June 15 July 10 Dec. 1 15 Issued 21,000 additional shares of common stock for $17 per share. Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. Issued 2,500 additional shares of common stock for $18 per share. Declared a cash dividend on outstanding shares of $2.30 per share to stockholders of record on December 31. (a) Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 1 Cash Common Stock Paid-in Capital in June 15 A Retained Earnings Dividends Payable July 10 A dividends payable Exercise 14-3 On January 1, 2017, Frontier Corporation had $1,125,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,500 shares of common stock at par on July 1 and earned net income of $395,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2017, for the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) (a) (b) Par value is $10, and market price is $18. Par value is $5, and market price is $20. Debit Credit No. Account Titles and Explanation (a) (b) Click if you would like to Show Work for this question: Open Show Work Exercise 14-6 On January 1, 2017, Eddy Corporation had retained earnings of $554,000. During the year, Eddy had the following selected transactions. 1. Declared cash dividends $134,000. 2. Corrected overstatement of 2016 net income because of inventory error $47,000. 3. Earned net income $352,000. 4. Declared stock dividends $67,000. Prepare a retained earnings statement for the year. (List items that increase retained earnings first.) EDDY CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 554000 Add . Net Income /(Loss) Balance, December 31 Click if you would like to Show Work for this question: Open Show Work Exercise 14-2 Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2,050 shares of $50 par value preferred stock and 102,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2016, $4,625; 2017, $13,500; and 2018, $28,500. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative. 2016 2017 2018 Allocation to preferred stock & $ Allocation to common stock $ $ SHOW LIST OF ACCOUNTS Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. 2016 2017 2018 Allocation to preferred stock & Allocation to common stock Journalize the declaration of the cash dividend at December 31, 2018, under part (b). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Click if you would like to Show Work for this question: Open Show Work
