Ehrlich Corporation has the following capital structure at the beginning of the year: 5% Preferred stock, $100 par value, 20,000 shares authorized, 6,000 shares issued and outstanding $ 600,000 Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding 400,000 Paid-in capital in excess of par 110,000 Total paid-in capital 1,110,000 Retained earnings 540,000 Total stockholders' equity $1,650,000 Instructions Record the following transactions (show all calculations). The board of directors approved a $95,000 cash dividend for the preferred and common stockholders. Record the journal entries for the declaration and the payment of the dividend, showing the allocation of the dividend between the preferred and common shareholders. 2. A 13% common stock dividend was declared. The average fair value of the common stock is $23 a share. Prepare the journal entry for the declaration of the dividend and for the distribution of the stock.
Ehrlich Corporation has the following capital structure at the beginning of the year:
5% Preferred stock, $100 par value, 20,000 shares authorized,
6,000 shares issued and outstanding $ 600,000
Common stock, $10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding 400,000
Paid-in capital in excess of par 110,000
Total paid-in capital 1,110,000
Total
Instructions
Record the following transactions (show all calculations).
- The board of directors approved a $95,000 cash dividend for the preferred and common stockholders. Record the journal entries for the declaration and the payment of the dividend, showing the allocation of the dividend between the preferred and common shareholders.
2. A 13% common stock dividend was declared. The average fair value of the common stock is $23 a share. Prepare the
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