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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020.
- Common stock; $10 par value; 500,000 shares authorized; 300,000 shares
I issued and outstanding ....
..$ 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
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