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Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 300,000 shares I issued and outstanding - Paid in capital in excess of par value, common stock .$ 3,000,000 ...400,000 .900,000 - Retained earnings... Total $4,300,000 The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of recor 2- Mar. 01, Purchased 20,000 shares of its own common for $15 per share. 3- Mar. 31, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 12,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- 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; $10 par value; 500,000 shares authorized; 300,000 shares I issued and outstanding - Paid in capital in excess of par value, common stock .$ 3,000,000 ...400,000 .900,000 - Retained earnings... Total $4,300,000 The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of recor 2- Mar. 01, Purchased 20,000 shares of its own common for $15 per share. 3- Mar. 31, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 12,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 1 Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 300,000 shares I issued and outstanding .... ..$ 3,000,000 - Paid in capital in excess of par value, common stock - Retained earnings......... .400,000 ..900,000 $4,300,000 Total The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2- Mar. 01, Purchased 20,000 shares of its own common for $15 per share. 3- Mar. 31, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 12,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- 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 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Transcribed Image Text:Question 1 Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 300,000 shares I issued and outstanding .... ..$ 3,000,000 - Paid in capital in excess of par value, common stock - Retained earnings......... .400,000 ..900,000 $4,300,000 Total The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2- Mar. 01, Purchased 20,000 shares of its own common for $15 per share. 3- Mar. 31, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 12,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- 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 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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