Mini-Exercise 8-1 (Algo) Common stock-issuance and dividend transactions LO 1, 3 Altuve Co. was incorporated on...

  

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Mini-Exercise 8-1 (Algo) Common stock-issuance and dividend transactions LO 1, 3 Altuve Co. was incorporated on January 1, 2019, at which time 475,000 shares of $10 par value common stock were authorized, and 200,000 of these shares were issued for $16 per share. Net income for the year ended December 31, 2019, was $2,286,000. Altuve Co.'s board of directors declared dividends of $3 per share of common stock on December 31, 2019, payable on February 7, 2020. Required: a. Use the horizontal model to show the effects of the issuance of common stock on January 1, 2019. Indicate the financial statement effect. b. Use the horizontal model to show the effects of the declaration of dividends on December 31, 2019. Indicate the financial statement effect. c. Use the horizontal model to show the effects of the payment of dividends on February 7, 2020. Indicate the financial statement effect. d. Record the journal entry for the following transactions: Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the journal entry for the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 7 View journal entry worksheet General Journal No Date A January 01, 2019 No Transaction Recorded Debit Credit X Journal entry worksheet < A B The declaration of dividends on December 31, 2019. Date Note: Enter debits before credits. C December 31, 2019 Record entry General Journal Clear entry Debit Credit View general journal Mini-Exercise 8-1 (Algo) Common stock-issuance and dividend transactions LO 1, 3 Altuve Co. was incorporated on January 1, 2019, at which time 475,000 shares of $10 par value common stock were authorized, and 200,000 of these shares were issued for $16 per share. Net income for the year ended December 31, 2019, was $2,286,000. Altuve Co.'s board of directors declared dividends of $3 per share of common stock on December 31, 2019, payable on February 7, 2020. Required: a. Use the horizontal model to show the effects of the issuance of common stock on January 1, 2019. Indicate the financial statement effect. b. Use the horizontal model to show the effects of the declaration of dividends on December 31, 2019. Indicate the financial statement effect. c. Use the horizontal model to show the effects of the payment of dividends on February 7, 2020. Indicate the financial statement effect. d. Record the journal entry for the following transactions: Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the journal entry for the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 7 View journal entry worksheet General Journal No Date A January 01, 2019 No Transaction Recorded Debit Credit X Journal entry worksheet < A B The declaration of dividends on December 31, 2019. Date Note: Enter debits before credits. C December 31, 2019 Record entry General Journal Clear entry Debit Credit View general journal

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a The issuance of common stock on January 1 2019 had the following financial statement effect Income ... View the full answer