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Hi, please correct my answes if there are mistakes, thanks Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd. provided
Hi, please correct my answes if there are mistakes, thanks Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd. provided the following information regarding the accounting for dividends and stock splits: 1 2 Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the quarterly dividend. and recorded it as a debit to Dividends Expense and a credit to Cash A5% stock dividend (1,000 shares) was declared on the common shares when the fair value per share was $12. To record the declaration Retained Earnings was debited and Dividends Payable was credited. The shares have not been issued yet The company declared a 2-for-1 stock split on its 21,200 $4 noncumulative preferred shares. The average per share amount of the preferred shares before the split was $70. The split was recorded as a debit to Retained Earnings of $1.484.000 and a credit to Preferred Shares of $1.484.000. 3 Determine if each of the above transactions was recorded correctly and, if not prepare the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Determine if each of the above transactions was recorded correctly and, if not, prepare the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Debit Credit Date Account Titles and Explanation (1) Dec. 31 Cash Cash Dividends - Common (To record payment of cash dividend) Retained Earnings 12000 (2) Dec 31 12000 Common Shares To record declaration of stock dividend.) No Entry (3) Dec. 31 No Entry
Hi, please correct my answes if there are mistakes, thanks
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