The articles of incorporation of Curtis Airlines Co. authorized 5 million common shares. The company originally issued
Question:
The articles of incorporation of Curtis Airlines Co. authorized 5 million common shares. The company originally issued 3.75 million common shares. However, over the years the company had repurchased and cancelled 750,000 common shares. The board declared a $0.50 cash dividend on January 1 and July 1. The date of record for the dividends is the 15th of the month, and the shares trade ex-dividend on the 13th. The dividends are paid on the last day of the month in which they were declared. The board of directors also declared a 5% stock dividend on October 31, and the market price on the date of declaration was $13.50 per share. The stock dividend was distributed on the date of declaration.
Required
Prepare all of the journal entries required to record the above transactions.
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley