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 $4,300,000 Total 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 $4,300,000 Total 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
$ 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.
- 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
Cr. Cash
10,000
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