E11-6 On January 1, Vanessa Corporation had 60,000 shares of no-par common stockissued and outstanding. The stock has a stated value of $4following transactions occurred.share. During the year, theJournalizand indicperpresentatiApr.June 15Issued 9,000 additional shares of common stock for $11 per share.Declared a cash dividend of $1.50 per share to stockholders of record onJune 30.1(LO 5), APJuly 10Deć.Paid the $1.50 cash dividend.Issued 4,000 additional shares of common stock for $12 per share.Declared a cash dividend on outstanding shares of $1.60 per share tostockholders of record on December 31.115Instructions(a) Prepare the entries, if any, on each of the three dates that involved dividends.(b) How are dividends and dividends payable reported in the financial statements preparedat December 31?

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Instructions (a) Prepare the entries, if any, on each of the three dates that involved dividends. (b) How are dividends and dividends payable reported in the financial statements prepared at December 31?

Instructions (a) Prepare the entries, if any, on each of the three dates that involved dividends. (b) How are dividends and dividends payable reported in the financial statements prepared at December 31?

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

E11-6 On January 1, Vanessa Corporation had 60,000 shares of no-par common stock
issued and outstanding. The stock has a stated value of $4
following transactions occurred.
share. During the year, the
Journaliz
and indic
per
presentati
Apr.
June 15
Issued 9,000 additional shares of common stock for $11 per share.
Declared a cash dividend of $1.50 per share to stockholders of record on
June 30.
1
(LO 5), AP
July 10
Deć.
Paid the $1.50 cash dividend.
Issued 4,000 additional shares of common stock for $12 per share.
Declared a cash dividend on outstanding shares of $1.60 per share to
stockholders of record on December 31.
1
15
Instructions
(a) Prepare the entries, if any, on each of the three dates that involved dividends.
(b) How are dividends and dividends payable reported in the financial statements prepared
at December 31?

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