Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 Common stock; $10...
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Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding. - Paid in capital in excess of par value, common stock Retained earnings..... Total $ 2,000,000 ..400,000 900,000 $3,300,000 The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan 31 stockholders of record 2- Mar 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16 6- Nov 01, Distributed stock dividends declared on Sep. 30. 7- Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021. Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding. - Paid in capital in excess of par value, common stock Retained earnings..... Total $ 2,000,000 ..400,000 900,000 $3,300,000 The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan 31 stockholders of record 2- Mar 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16 6- Nov 01, Distributed stock dividends declared on Sep. 30. 7- Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021.
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Date Accounts Debit Credit Jan 10 Cash dividends 2000001 200000 Dividends payable 200000 Mar 01 Trea... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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