Question
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.
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 following occurred.
| Apr. | 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. | |
| July | 10 | Paid the $1 cash dividend. | |
| Dec. | 1 | 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. |
(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
