The “Elements” Corporation reflects the following capital structure as of January 1: 10,000 Preferred Shares, 5%, issued and outstanding; $10 even value. 10,000 Common Shares, issued and outstanding; $1 even value. During the month of January, the following transactions were carried out

8. January 15: A cash dividend of 30 cents ($.30) per share for common stock and 60 cents ($.60) per share for the preferred stock was declared. The entry to record this transaction is as follows:

a. Retained Earnings 9,000 Preferred Stock Dividends Payable 6,000 Common Stock Dividends Payable 3,000

b. Retained Earnings 8,610 Dividends Payable 8,610

c. Retained Earnings 9,000 Dividends Distributable 9,000

d. Dividends Payable 21,000 Retained Earnings 21,000

9. January 20: A dividend was declared to be distributed in shares equal to 10% of the outstanding common shares. The market price of the common stock was $9 per share on the date of the dividend declaration. The entry to record the dividend declaration is:

a. Retained Earnings 12,000 Common Stock Dividend Distributable 12,000

b. Retained Earnings 9,000 Common Stock Dividend Distributable 1,000 Paid in Capital in Excess of Par Value 8,000

c. Retained Earnings 9,000 Common Stock Dividend Distributable 9,000

d. Retained Earnings 6,500 Common Stock Dividend Distributable 5,000 Paid in Capital in Excess of Par Value 1,500

10.  January 31: Share certificates for the dividend declared on January 20 were distributed.

a. Common Stock Dividends Distributable 6,700 Common Stocks, Par Value 6,700

b. Common Stock Dividends Distributable 8,710 Common Stocks, Par Value 8,710

c. Common Stock Dividends Distributable 6,500 Common Stocks, Par Value 6,500

d. Common Stock Dividends Distributable 1,000 Common Stocks, Par Value 1,000

Answer premises using the Above information.

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8 Total dividend for common share Numbers of common share X dividend per share 10000 X 030 3000 Tota... View the full answer