On January 1, 2018, Ceradyne Corporation had 84,000 common shares, recorded at $625,000, and retained earnings of $928,000. During the year, the following transactions occurred: Apr. 2 June 15 Aug. 21 Issued 5,400 common shares at $20 per share. Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10. Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $23 a share on August 21, $24 on September 5, and $25 on September 20. Issued 2,900 common shares at $24 per share. Nov. 1 Dec. 20 Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10.
On January 1, 2018, Ceradyne Corporation had 84,000 common shares, recorded at $625,000, and retained earnings of $928,000. During the year, the following transactions occurred: Apr. 2 June 15 Aug. 21 Issued 5,400 common shares at $20 per share. Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10. Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $23 a share on August 21, $24 on September 5, and $25 on September 20. Issued 2,900 common shares at $24 per share. Nov. 1 Dec. 20 Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(a)
Your answer is correct.
Record the above transactions for 2018. (Note: Closing entries are not required.) (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Round answers to O decimal places, e.g. 5,275.)
Date
Apr. 2
June 15
July 10
Aug 21
Sept. 20
Nov. 1
Dec. 20
Account Titles and Explanation
Cash
Common Shares
Dividends Declared
Dividends Payable
Dividends Payable
Cash
Dividends Declared
Stock Dividends Distributable
Stock Dividends Distributable
Common Shares
Cash
Common Shares
Dividends Declared
Dividends Payable
Debit
108000
22350
22350
102810
102810
69600
29031
Credit
108000
22350
22350
102810
102810
69600
29031
Transcribed Image Text:(b)
On January 1, 2018, Ceradyne Corporation had 84,000 common shares, recorded at $625,000, and retained earnings of $928,000.
During the year, the following transactions occurred:
Apr. 2
June 15
Aug. 21
Nov. 1
Dec. 20
(a)
Issued 5,400 common shares at $20 per share.
Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10.
Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20.
The shares were trading for $23 a share on August 21, $24 on September 5, and $25 on September 20.
Issued 2,900 common shares at $24 per share.
Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January
10.
Record the above transactions for 2018. (Note: Closing entries are not required.) (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the
amounts. Round answers to O decimal places, e.g. 5,275.)
What is the number of common shares at the end of the year?
Number of common shares
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