12) ABSD INC.'s B.O.D's approved issuance of 5,000,000 share of $50 par valuecommon stock. Currently 4,200,000 shares are outstanding.Current stock price is $60A 4% stock dividend is declared on March 1, 2020 and paid two months later.Show journal entries required to record declaration and payment of distribution.

Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…

Answered: 12) ABSD INC.'s B.O.D's approved…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc. authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on August 20, 2019? Select one: O a. Dr. Dividends Payable $500,000. Cr. Cash $500,000 O b. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 Oc. Dr. Dividends Payable $33,000. Cr. Cash $33,000 Od. No entry is necessary Oe. None of the above Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc, authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on July 31, 2019? Select one: Oa. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 O b. Dr. Dividends Payable $500,000. Cr. Cash Dividends $500,000 Oc. No entry is necessary Od. Dr.…
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On July 1, 2021, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $12 par preferred stock for a lump sum of $140,000. At this date Nall's common stock was selling for $18 per share and the preferred stock for $24 per share. A. Record the journal entry for this allocation and insurance using the proportional method. Record the journal entry for this allocation and issuance using the incremental method, assuming you do not have the market value for preferred stock.
At the start of 20X5, Happy Corp. had 20,000 shares of $5 par common stock issued and outstanding. All 20,000 shares had been issued in the prior year for $20 per share. On February 1, 20X5, Happy repurchased 6,000 shares of its own stock for $12 per share. It plans to reissue these shares at a future time. Question: What journal entry should Happy make to record the February 1, 20X5 transaction? Answer: It should debit for $ and credit + for $
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Problem One: Prepare proper journal entries for these transactions for Batman Industries Inc. The following activities regarding share subscriptions occurred during 2020 for Batman Industries Inc. July 1- Sold 1,000 subscriptions for common shares at $20 per share. Subscribers paid $5 per share on this date; $5 more per share is due on September 1. Subscribers who fail to make the second payment on September 1 get their deposit refunded. The final payment of the balance of $10 per share is due on December 1. Subscribers who fail to make the final payment forfeit the $10 per share they have paid. September 1 – 900 of the subscribed shares first payment were made. 100 were not made and qualified for the refund. Record the payments received and the refund made. December 1 – 800 final payments were received, 100 more did not make the payment and forfeited their first two payments. Record the payments received, the common shares issued, and the payments forfeited.
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 50 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018. Prepare the journal entry.
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Information related to the common shares of Empresas ABC for the year 2019 is presented below: January 1 - opening balances: 2,000,000 authorized, 402,000 issued, and 400,000 outstanding March 1 - Sells 15,000 authorized common shares, not previously issued June 1 - Declare and distribute a 10% stock dividend to outstanding shares November 1 - Declares a 2: 1 “stock-split-up” December 1 - sell (issue) 1,000 portfolio shares below cost Determine the total number of common shares outstanding as of December 31, 2019 Select one: to. 229,250 shares b. 914,000 shares c. 912,000 shares d. 399,000 shares
During its first year of operations, Cupola Fan Corporation issued 36,000 of $1 par Class B shares for $415,000 on June 30, 2024. Share issue costs were $2,100. One year from the issue date (July 1, 2025), the corporation retired 10% of the shares for $42,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2.60 per share dividend on December 1, 2024, the payment of the dividend on December 31, 2024, and the retirement of the shares. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid. Instructions: a) Prepare the journal entries to account for the issue of shares for ABC and ( ... b) The Share Capital that would appear in the Balance Sheet of ABC Co. .--
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