Question
Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and outstanding. During the year, the following transactions
Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and outstanding. During the year, the following transactions occurred.
Apr. 1 | Issued 8,000 additional shares of common stock for $11 per share. |
June 15 | Declared a cash dividend of $1.50 per share to stockholders of record on June 30. |
July 10 | Paid the $1.50 cash dividend. |
Dec. 1 | Issued 4,000 additional shares of common stock for $12 per share. |
15 | Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31. |
Instructions
(a) Prepare the entries for the above transactions.
(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?
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