Cash Dividends on Common Stock Berkwild Company is authorized to issue 1,000,000 shares of common stock. At the beginning of 2019, Berkwild had 348,800 issued and outstanding shares. On July 2, 2019, Berkwild repurchased 1,310 shares of common stock. On March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1. Required: 1. Prepare the entries to record the declaration of the two cash dividends. 2019 Mar. 1 fill in the blank 074ed9f9cfcefe3_2 fill in the blank 074ed9f9cfcefe3_4 (Record liability for dividends) Sept. 1 fill in the blank 074ed9f9cfcefe3_6 fill in the blank 074ed9f9cfcefe3_8 (Record liability for dividends) 2. Prepare the entries to record the payment of the two dividends. 2019 Apr. 1 fill in the blank ea873dfee06900c_2 fill in the blank ea873dfee06900c_4 (Record payment of dividends) Oct. 1 fill in the blank ea873dfee06900c_6 fill in the blank ea873dfee06900c_8 (Record payment of dividends) 3. Conceptual Connection: Explain why the amounts of the two dividends are different. The number of shares outstanding due to the purchase of treasury stock on July 2.

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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Cash Dividends on Common Stock

Berkwild Company is authorized to issue 1,000,000 shares of common stock. At the beginning of 2019, Berkwild had 348,800 issued and outstanding shares. On July 2, 2019, Berkwild repurchased 1,310 shares of common stock. On March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1.

Required:

1. Prepare the entries to record the declaration of the two cash dividends.

2019 Mar. 1		fill in the blank 074ed9f9cfcefe3_2
			fill in the blank 074ed9f9cfcefe3_4
	(Record liability for dividends)
Sept. 1		fill in the blank 074ed9f9cfcefe3_6
			fill in the blank 074ed9f9cfcefe3_8
	(Record liability for dividends)

2. Prepare the entries to record the payment of the two dividends.

2019 Apr. 1		fill in the blank ea873dfee06900c_2
			fill in the blank ea873dfee06900c_4
	(Record payment of dividends)
Oct. 1		fill in the blank ea873dfee06900c_6
			fill in the blank ea873dfee06900c_8
	(Record payment of dividends)

3. Conceptual Connection: Explain why the amounts of the two dividends are different.

The number of shares outstanding due to the purchase of treasury stock on July 2.

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