Cash Dividends on Common Stock Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Berkwild had 310,000 issued and outstanding shares. On July 2, Berkwild repurchased 4,610 shares of its common stock at $28 per sha March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1. Required: 1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank. Mar. 1 Sept. 1 2. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank. Apr. 1 Oct. 1 3. Conceptual Connection: Explain why the amounts of the two dividends are different. The number of shares outstanding due to the purchase of treasury stock on July 2.

Cash Dividends on Common Stock Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Berkwild had 310,000 issued and outstanding shares. On July 2, Berkwild repurchased 4,610 shares of its common stock at $28 per sha March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1. Required: 1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank. Mar. 1 Sept. 1 2. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank. Apr. 1 Oct. 1 3. Conceptual Connection: Explain why the amounts of the two dividends are different. The number of shares outstanding due to the purchase of treasury stock on July 2.

Name: Cash Dividends on Common StockBerkwild Company is authorized to issue
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Description: Cash Dividends on Common StockBerkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Berkwild had 310,000 issued and outstanding shares. On July 2, Berkwild repurchased 4,610 shares of its common stoc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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