Before Closing). Step 5: ansactions directly into the Gen. Enter the following journal tr eral Journal tab. ares of common stock outstanding to stockholders of record: No. 4253. clared and paid an annual dividend of $3.25 per share on the s les Invoice No. 3101 for Received cash on account, covering Sa $50,411.00. 04 oS D eclared a 5-percent common stock dividend on common stock outstanding (55,000 596 = 2,750 shares). The market value of the common stock is $31.50; Reference, Div. 9 Note: Before this transaction, 55,000 shares of common stock with a par value of $25.20 were outstanding. 06 Sold merchandise on account, $289,990.00; Sales Invoice No. 3135. The cost of the merchandise sold was $92,796.00. I Note: Problems in previous chapters included businesses that had perputual inventory systems. In those problems, the computer automati- cally calculated the cost of merchandise from their inventory data, and then automatically integrated the data to the business's inventory and accounting systems. Because Kramer Corporation does not use an inven- tory system, the cost of merchandise sold has been provided in the sales transaction. Therefore, the following journal entry is provided as an example of how to enter this sales transaction in the general journal. 2 Refer. Acct. Title Debit Credit 3135 1120 Accounts Receivable 289,990.00 2 5110 Cost of Merchandise Sold 92,796.00 4110 Sales 1130 Merchandise Inventory 7 289,990.00 92,796.00 2 2