Cash Dividends on Common Stock Wildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, wildebeest had 320,000 issued and outstanding shares. On July 2, Wildebeest repurchased 4,610 share of its common stock at $28 per share. On March 1 and September 1, Wildebeest 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, isave it blank. Apr. 1 Oct. 1 3. Conceptual Connection: Explain why the amounts of the two dividends are different. due to the purchase of treasury stock on July 2 The number of shares outstanding,
Cash Dividends on Common Stock Wildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, wildebeest had 320,000 issued and outstanding shares. On July 2, Wildebeest repurchased 4,610 share of its common stock at $28 per share. On March 1 and September 1, Wildebeest 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, isave it blank. Apr. 1 Oct. 1 3. Conceptual Connection: Explain why the amounts of the two dividends are different. due to the purchase of treasury stock on July 2 The number of shares outstanding,
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Cash Dividends on Common Stock
Wildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, wildebeest had 320,000 issued and outstanding shares. On July 2, Wildebees repurchased 4,610 share of its
common stock at $28 per share. On March 1 and September 1, Wildebeest 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, isave it blank.
Apr. 1
Oct. 1
3. Conceptual Connection: Explain why the amounts of the two dividends are different.
due to the purchase of treasury stock on July 2
The number of shares outstanding,
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