On January 1, Molini Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a par value of $5 per share. During the year, the following occurred.Jan. 5 Issued 25,000 additional shares of common stock for $17 per share.April 15 Declared a cash dividend of $1 per share to stockholders of record on April 30.May 10 Paid the $1 cash dividend.July 15 Declared a 10% stock dividend on 120,000 (95,000 + 25,000) shares to stockholders of record on July 30. The per share par value is $5, book value $15 and market value is $100 per share at the time.August 10 Issued the stocks dividends.Dec. 1 Issued 2,000 additional shares of common stock for $19 per share.Dec. 15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. (Notice that number of outstanding shares have changed due to August 10 and December 1 transactions, so, you must take the updated data into account)Instructions:Prepare the dividend entries only, if any, on each of the three dividend dates.

Definition: Dividends: This is the amount of cash distributed to stockholders by a company out its…

Answered: On January 1, Molini Corporation had…

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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On January 1, Molini Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a par value of $5 per share. During the year, the following occurred.

Jan. 5 Issued 25,000 additional shares of common stock for $17 per share.
April 15 Declared a cash dividend of $1 per share to stockholders of record on April 30.
May 10 Paid the $1 cash dividend.
July 15 Declared a 10% stock dividend on 120,000 (95,000 + 25,000) shares to stockholders of record on July 30. The per share par value is $5, book value $15 and market value is $100 per share at the time.
August 10 Issued the stocks dividends.
Dec. 1 Issued 2,000 additional shares of common stock for $19 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. (Notice that number of outstanding shares have changed due to August 10 and December 1 transactions, so, you must take the updated data into account)

Instructions:

Prepare the dividend entries only, if any, on each of the three dividend dates.

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