Question: On March 1 2014 Kissell Corporation began operations with a

On March 1, 2014, Kissell Corporation began operations with a charter from the state that authorized 100,000 shares of $4 par value common stock. Over the next quarter, the company engaged in the transactions that follow.
Mar. 1 Issued 30,000 shares of common stock, $200,000.
2 Paid fees associated with obtaining the charter and starting up and organizing the corporation, $24,000.
Apr. 10 Issued 13,000 shares of common stock, $130,000.
15 Purchased 5,000 shares of common stock, $50,000
May 31 The board of directors declared a $0.20 per share cash dividend to be paid on June 15 to shareholders of record on June 10.

1. Record the above transactions using T accounts.
2. Prepare the stockholders’ equity section of Kissell’s balance sheet on May 31, 2014.
Net income earned during the first quarter was $30,000.
3. What effect, if any, will the cash dividend declaration on May 31 have on Kissell’s net income, retained earnings, and cash flows?

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  • CreatedMarch 26, 2014
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