Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Mar. 1 Declares a cash dividend of $2 per share. Mar. 30 Pays the cash dividend. Jul. 10 Declares a 5% stock dividend when the stock is trading at $15 per share. Aug. 5 Issues the stock dividend. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 Retained Earnings Retained Earnings Cash Dividends Payable Cash Dividends Payable Mar. 30 Cash Dividends Payable Cash Dividends Payable Cash Cash Jul. 10 Retained Earnings Retained Earnings Common Stock Dividend Distributable Common Stock Dividend Distributable Additional Paid-in Capital-Common Stock Additional Paid-in Capital-Common Stock Aug. 5 Common Stock Dividend Distributable Common Stock Dividend Distributable
Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Mar. 1 Declares a cash dividend of $2 per share. Mar. 30 Pays the cash dividend. Jul. 10 Declares a 5% stock dividend when the stock is trading at $15 per share. Aug. 5 Issues the stock dividend. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 Retained Earnings Retained Earnings Cash Dividends Payable Cash Dividends Payable Mar. 30 Cash Dividends Payable Cash Dividends Payable Cash Cash Jul. 10 Retained Earnings Retained Earnings Common Stock Dividend Distributable Common Stock Dividend Distributable Additional Paid-in Capital-Common Stock Additional Paid-in Capital-Common Stock Aug. 5 Common Stock Dividend Distributable Common Stock Dividend Distributable
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the
Mar. 1 | Declares a cash dividend of $2 per share. |
Mar. 30 | Pays the cash dividend. |
Jul. 10 | Declares a 5% stock dividend when the stock is trading at $15 per share. |
Aug. 5 | Issues the stock dividend. |
Prepare the
Mar. 1 |
|
Retained Earnings | |
|
Cash Dividends Payable | Cash Dividends Payable | |
Mar. 30 |
|
Cash Dividends Payable | Cash Dividends Payable |
|
Cash | Cash | |
Jul. 10 |
|
Retained Earnings | Retained Earnings |
|
Common Stock Dividend Distributable | Common Stock Dividend Distributable | |
|
Additional Paid-in Capital-Common Stock | Additional Paid-in Capital-Common Stock | |
Aug. 5 |
|
Common Stock Dividend Distributable | Common Stock Dividend Distributable |
|
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