Cactus Joe Corporation reported stockholders' equity on January 1 of the current year as follows: Common Stock, $5 par value, 1,000,000 shares authorized, 600,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $1,025,000; Retained Earnings, $1,850,000. Prepare journal entries to record the following transactions:May 1A cash dividend of $1.05 per common share was declared by the board of directors to stockholders of record on May 20, payable June 1.May 20The date of record. June 1Paid the cash dividend.
What will be an ideal response?
| May 1 | Retained Earnings (600,000 * $1.05) ……… | 630,000 | ? |
| ? | Common Dividend Payable ……………… | ? | 630,000 |
| ? | ? | ? | ? |
| May 20 | No entry required. | ? | ? |
| ? | ? | ? | ? |
| June 1 | Common Dividend Payable ……………… | 630,000 | ? |
| ? | Cash ……………………………………… | ? | 630,000 |
You might also like to view...
Positive values of covariance indicate
A. a positive variance of the x values. B. a positive variance of the y values. C. the standard deviation is positive. D. positive relation between the independent and the dependent variables.
Listeners who are opportunistic view listening at work as a chance to solve problems
Indicate whether this statement is true or false.
The _________ résumé is one in which skills are broken down into categories that quickly communicate to employers what the candidate can do for them.
a. generic b. combination c. functional d. best
Patrol, Inc, leased a machine from Ravel Company. The lease term was for a five-year period beginning January 1 . 2014 . Equal annual lease payments of $3,000 are due on December 31 of each year. The implicit rate of the lease is 10% and is known to Patrol. Patrol has properly applied the lease capitalization criteria and as a result, accounts for the lease as a capital lease. The first payment
under the lease was made on December 31 . 2014 as scheduled. How much should Patrol classify as the current portion of the lease liability at December 31 . 2014? a. $2,049 b. $7,460 c. $3,000 d. $9,509