Question 6 (8 marks) IM Corporation has 200,000 common shares outstanding and 10,000 $2 preferred shares...

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Question 6 (8 marks) IM Corporation has 200,000 common shares outstanding and 10,000 $2 preferred shares outstanding. a. December 15, 2019, the Board of Directors declared a $120,000 dividend, which included a full year dividend for the preferred shares. The Dividend will be paid on December 31. (4 marks) b. February 1, 2020, issued 20,000 common shares for $14 each. (2 marks) c. August 1, 2020, the board of directors declared a 10% common stock dividend to be distributed on August 31. The current selling price of the common shares was $18 per share. Provide only the August 1 journal entry. (2 marks) Required: a. Provide both the December 15 and December 31 journal entries. b. Provide the February 1 journal entry c. Provide the August 1 journal entry. Question 6 (8 marks) IM Corporation has 200,000 common shares outstanding and 10,000 $2 preferred shares outstanding. a. December 15, 2019, the Board of Directors declared a $120,000 dividend, which included a full year dividend for the preferred shares. The Dividend will be paid on December 31. (4 marks) b. February 1, 2020, issued 20,000 common shares for $14 each. (2 marks) c. August 1, 2020, the board of directors declared a 10% common stock dividend to be distributed on August 31. The current selling price of the common shares was $18 per share. Provide only the August 1 journal entry. (2 marks) Required: a. Provide both the December 15 and December 31 journal entries. b. Provide the February 1 journal entry c. Provide the August 1 journal entry.

Answer rating: 100% (QA)

a December 15 Journal Entry Debit Dividends Payable 120000 Credi... View the full answer