February 2 Issue 1.5 million shares of common stock for $15 per sha February 4 Issue 400,000 shares of preferred stock for $24 per shar June 15 Purchase 150,000 shares of its own common stock for $10 August 15 Resell 112,500 shares of treasury stock for $25 per shar November 1 Declare a cash dividend on its common stock of $1.50 per dividend on its preferred stock payable to all stockhold not paid on treasury stock.) November 30 Pay the dividends declared on November 1.
February 2 Issue 1.5 million shares of common stock for $15 per sha February 4 Issue 400,000 shares of preferred stock for $24 per shar June 15 Purchase 150,000 shares of its own common stock for $10 August 15 Resell 112,500 shares of treasury stock for $25 per shar November 1 Declare a cash dividend on its common stock of $1.50 per dividend on its preferred stock payable to all stockhold not paid on treasury stock.) November 30 Pay the dividends declared on November 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Transcription for Educational Use:**
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**Requirement:**
Record each of these transactions. (*If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.*)
1. February 2: Issue 1.5 million shares of common stock for $15 per share.
2. February 4: Issue 40,000 shares of preferred stock for $24 per share.
3. August 15: Resell 125,000 shares of treasury stock for $32 per share.
4. November 1: Declare a cash dividend of $0.15 per share on 1,480,000 (1.5 million - 20,000 not paid on treasury stock) shares of common stock and a $0.40 per share cash dividend on 40,000 shares of preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are declared on November 1.)
**Journal Entry Worksheet:**
- **Date:** February 02, 2021
- **Description:** Record the issuance of 1.5 million shares of common stock for $15 per share.
- **Note:** Enter debits before credits.
- **Columns:**
- General Journal
- Debit
- Credit
- Entry fields (1 through 6) to be filled as per the transaction details.
**Explanation:**
- This worksheet section is used to document journal entries.
- Debits and credits should be entered correctly to ensure accurate recording of financial transactions.
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This guide outlines the necessary steps to properly record stock transactions and dividends in financial accounting.
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