**Tent & Tarp Corporation: Company Overview and Recent Transactions****Overview:**Tent & Tarp Corporation is a manufacturer of outdoor camping equipment, established ten years ago. The corporation is authorized to issue:- 50,000 shares of $10 par value 5% preferred stock- 500,000 shares of $1 par value common stockCurrently, it has issued:- 5,000 common shares- 2,000 preferred shares*Note: The corporation has never declared a dividend, and the preferred shares are one year in arrears.***Recent Transactions:**1. **March 1:** The corporation declared a cash dividend of $10,000.2. **March 30:** The corporation paid the cash dividend.**Instructions:**Journalize these transactions for March 1st and March 30th.

Journal entry is defined as keeping or maintaining the records of business transactions in the books of accounts either non- economic or economic in nature.The journal entries are as follows: Date Particulars Debit Credit March 1 Retained Earnings Cash Dividend Payable (Being cash dividend declared) $10,000 $10,000 March 30 Cash Dividend Payable Bank (Being cash dividend paid for current year) $10,000 $10,000

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Tent & Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated ten years ago. It is authorized to issue 50,000 shares of $10 par value 5% preferred stock. It is also authorized to issue 500,000 shares of $1 par value common stock. It has issued 5,000 common shares and 2,000 of the preferred shares. The corporation has never dectared a dividend and the preferred shares are one years in arrears. Tent & Tarp has the following transactions: Mar. 1 Declares a cash dividend of $10,000 Mar. 30 Pays the cash dividend Journalize these transactions for March 1st and March 30th.

Tent & Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated ten years ago. It is authorized to issue 50,000 shares of $10 par value 5% preferred stock. It is also authorized to issue 500,000 shares of $1 par value common stock. It has issued 5,000 common shares and 2,000 of the preferred shares. The corporation has never dectared a dividend and the preferred shares are one years in arrears. Tent & Tarp has the following transactions: Mar. 1 Declares a cash dividend of $10,000 Mar. 30 Pays the cash dividend Journalize these transactions for March 1st and March 30th.

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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