Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding.... $3,000,000 -Paid in capital in excess of par value, common stock. -Retained earnings... 400,000 900.000 Total $4,300,000 The Corporation completed the following transactions in 2021. -Jan, 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. - Mar. 01, Purchased 30,000 shares of its own common for $15 per share. - Mar. 31, Paid the cash dividend declared on Jan. 10. - May 01, Sold 10,000 of its treasury shares at $15 cash per share. -Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. - Nov, 01, Distributed stock dividends declared on Sep. 30, - Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021.
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding.... $3,000,000 -Paid in capital in excess of par value, common stock. -Retained earnings... 400,000 900.000 Total $4,300,000 The Corporation completed the following transactions in 2021. -Jan, 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. - Mar. 01, Purchased 30,000 shares of its own common for $15 per share. - Mar. 31, Paid the cash dividend declared on Jan. 10. - May 01, Sold 10,000 of its treasury shares at $15 cash per share. -Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. - Nov, 01, Distributed stock dividends declared on Sep. 30, - Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
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![Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020.
- Common stock; $10 par value; 700,000 shares authorized; 300,000 shares
issued and outstanding.....
-Paid in capital in excess of par value, common stock
$3,000,000
-Retained earnings...
400,000
900,000
Total
$4,300,000
The Corporation completed the following transactions in 2021.
- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record.
- Mar. 01, Purchased 30,000 shares of its own common for $15 per share.
-Mar. 31, Paid the cash dividend declared on Jan. 10.
May 01, Sold 10,000 of its treasury shares at $15 cash per share.
-Sep. 30, Directors declared a 30% stock dividend when the share market price is $16.
-Nov, 01, Distributed stock dividends declared on Sep. 30.
-Nov. 15, The company implemented 5-for-1 stock split for the common stock.
Required: Prepare journal entries to record each of these transactions for 2021.
CLEARLY INDICATE THE DEBITS & CREDITS
Example: XYZ Company pays $10,000 cash to purchase land
Answer
Dr. Land
10,000
10,000
Cr. Cash
Ada](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5527d56-2994-4551-a85e-1009e5da3c74%2Fdb3212d9-96d8-4c51-879a-8616d771bcaf%2F3kueb3f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020.
- Common stock; $10 par value; 700,000 shares authorized; 300,000 shares
issued and outstanding.....
-Paid in capital in excess of par value, common stock
$3,000,000
-Retained earnings...
400,000
900,000
Total
$4,300,000
The Corporation completed the following transactions in 2021.
- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record.
- Mar. 01, Purchased 30,000 shares of its own common for $15 per share.
-Mar. 31, Paid the cash dividend declared on Jan. 10.
May 01, Sold 10,000 of its treasury shares at $15 cash per share.
-Sep. 30, Directors declared a 30% stock dividend when the share market price is $16.
-Nov, 01, Distributed stock dividends declared on Sep. 30.
-Nov. 15, The company implemented 5-for-1 stock split for the common stock.
Required: Prepare journal entries to record each of these transactions for 2021.
CLEARLY INDICATE THE DEBITS & CREDITS
Example: XYZ Company pays $10,000 cash to purchase land
Answer
Dr. Land
10,000
10,000
Cr. Cash
Ada
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