The declaration, record, and payment dates in connection with a cash dividend of $108,000 on a corporations
Question:
The declaration, record, and payment dates in connection with a cash dividend of $108,000 on a corporation’s common stock are January 12, March 13, and April 12.
Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
2.
Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 19,200 shares of its common stock at $19 per share. On June 14, 13,600 of the reacquired shares were sold at $24 per share, and on November 23, 4,100 of the reacquired shares were sold at $20.
Required:
A. | Journalize the transactions of January 31, June 14, and November 23. Refer to the Chart of Accounts for exact wording of account titles. |
B. | What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? |
C. | What is the balance in Treasury Stock on December 31 of the current year? |
D. | How will the balance in Treasury Stock be reported on the balance sheet? |
CHART OF ACCOUNTSLawn Spray Inc.General Ledger
ASSETS | |
110 | Cash |
120 | Accounts Receivable |
131 | Notes Receivable |
132 | Interest Receivable |
141 | Merchandise Inventory |
145 | Office Supplies |
151 | Prepaid Insurance |
181 | Land |
193 | Equipment |
194 | Accumulated Depreciation-Equipment |
LIABILITIES | |
210 | Accounts Payable |
221 | Notes Payable |
226 | Interest Payable |
231 | Cash Dividends Payable |
241 | Salaries Payable |
261 | Mortgage Note Payable |
EQUITY | |
311 | Common Stock |
312 | Paid-In Capital in Excess of Par-Common Stock |
315 | Treasury Stock |
321 | Preferred Stock |
322 | Paid-In Capital in Excess of Par-Preferred Stock |
331 | Paid-In Capital from Sale of Treasury Stock |
340 | Retained Earnings |
350 | Stock Dividends Distributable |
351 | Cash Dividends |
352 | Stock Dividends |
390 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Merchandise Sold |
515 | Credit Card Expense |
520 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Selling Expenses |
534 | Rent Expense |
535 | Insurance Expense |
536 | Office Supplies Expense |
537 | Organizational Expenses |
562 | Depreciation Expense-Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider