Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and outstanding. During the year, the following transactions occurred. Apr. 1 Issued 8,000 additional shares of common stock for $11 per share. June 15 July 10 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. Paid the $1.50 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31. Instructions (a) Prepare the entries for the above transactions. (b) How are dividends and dividends payable reported in the financial statements prepared at December 31?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and
outstanding. During the year, the following transactions occurred.
Apr. 1
Issued 8,000 additional shares of common stock for $11 per share.
June 15
Declared a cash dividend of $1.50 per share to stockholders of record on June 30.
Paid the $1.50 cash dividend.
July 10
Dec. 1
Issued 4,000 additional shares of common stock for $12 per share.
15
Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on
December 31.
Instructions
(a) Prepare the entries for the above transactions.
(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?
Transcribed Image Text:Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and outstanding. During the year, the following transactions occurred. Apr. 1 Issued 8,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. Paid the $1.50 cash dividend. July 10 Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31. Instructions (a) Prepare the entries for the above transactions. (b) How are dividends and dividends payable reported in the financial statements prepared at December 31?
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