1. Deborah's Delicious Dogfood, Inc. decides to issue some of its own common stock to new...
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1. Deborah's Delicious Dogfood, Inc. decides to issue some of its own common stock to new shareholders. The company receives $200,000 cash from shareholders in exchange for 20,000 shares of its $3 par common stock. (5pts) A. Provide the complete journal entry for this transaction (including account names, debit & credit amounts). B. How does this transaction affect the Income Statement? 2. On July 15, Deborah's Delicious Dogfood declares a cash dividend of $0.28 per share on the common stock, payable on August 7, to shareholders of record at the close of business on July 30. (10pts) A. What is the name of each of these dividend dates: 1. July 15 II. July 30 III. August 7 B. On what date will a shareholder receive the cash dividend? C. On what date does the dividend become a liability for the company? D. On what date is there no entry on the financial statements? E. How does this dividend affect Net Income? 1. Deborah's Delicious Dogfood, Inc. decides to issue some of its own common stock to new shareholders. The company receives $200,000 cash from shareholders in exchange for 20,000 shares of its $3 par common stock. (5pts) A. Provide the complete journal entry for this transaction (including account names, debit & credit amounts). B. How does this transaction affect the Income Statement? 2. On July 15, Deborah's Delicious Dogfood declares a cash dividend of $0.28 per share on the common stock, payable on August 7, to shareholders of record at the close of business on July 30. (10pts) A. What is the name of each of these dividend dates: 1. July 15 II. July 30 III. August 7 B. On what date will a shareholder receive the cash dividend? C. On what date does the dividend become a liability for the company? D. On what date is there no entry on the financial statements? E. How does this dividend affect Net Income?
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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