Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred stock. In its first year of operations during 2018, the company presented the following transactions:• Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share.• Earned Net income $200,000• Paid dividends of $5 per share. Required.1. Prepare the journal entry to record the following:a. Common stock shares issuedb. Close out net income to retained earningsc. Dividend paidd. Close out dividend to retained earnings. Plz give detailed explanation
Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred stock. In its first year of operations during 2018, the company presented the following transactions:• Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share.• Earned Net income $200,000• Paid dividends of $5 per share. Required.1. Prepare the journal entry to record the following:a. Common stock shares issuedb. Close out net income to retained earningsc. Dividend paidd. Close out dividend to retained earnings. Plz give detailed explanation
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 9P: Comprehensive Young Corporation has been operating successfully for several years. It is authorized...
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Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of
• Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share.
• Earned Net income $200,000
• Paid dividends of $5 per share.
Required.
1. Prepare the
a. Common stock shares issued
b. Close out net income to
c. Dividend paid
d. Close out dividend to retained earnings.
Plz give detailed explanation
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