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PLEASE ANSEWR ALL PARTS AND USE THE NUMBERS FROM THE QUESTION TO HELP WITH ANSWERING Thompson Payroll Service began the year with 1,500,000 authorized and
PLEASE ANSEWR ALL PARTS AND USE THE NUMBERS FROM THE QUESTION TO HELP WITH ANSWERING
Thompson Payroll Service began the year with 1,500,000 authorized and 810,000 issued and outstanding $8 par common shares. During the year Thompson entered into the following transactions:
a. | Declared a $0.10 per-share cash dividend on March 24. |
b. | Paid the $0.10 per-share dividend on April 6. |
c. | Repurchased 17,000 common shares for the treasury at a cost of $11 each on May 9. |
d. | Sold 2,000 unissued common shares for $15 per share on June 19. |
e. | Declared a $0.30 per-share cash dividend on August 1. |
f. | Paid the $0.30 per-share dividend on September 14. |
g. | Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. |
h. | Declared a $0.50 per-share cash dividend on November 20. |
i. | Paid the $0.50 per-share dividend on December 20. |
Required:
1. | Prepare journal entries for each of these transactions. |
2. | What is the total dollar amount of dividends (cash and stock) for the year? |
3. | Conceptual Connection: Determine the effect on total assets and total stockholders equity of these dividend transactions. |
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