During 2012, Margan Corporation had the following transactions and events. . Dec

Question

During 2012, Margan Corporation had the following transactions and events. . Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than par value. 5. Made a prior period adjustment for overstatement of net income. 6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above. 7. Paid the cash dividend in item no. 1 above. 8. Issued par value common stock for cash above par value. Paid-in Capital Item Capital Stock Additional Retained Earnings 1. No Effect No Effect Decrease 2. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 3. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 4. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 5. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 6. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 7. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 8. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect

Explanation / Answer

for accural of interest or due entryin case dividend is paid to prefernce share holders.1.Proposed Dividend......A/C Dr $800To Preference share holders a/c $8002.Transfer proposed dividend to Interim dividend.Proposed dividend a/c Dr $800To Interim Dividend a/c $800transfer to interim dividend is required bcozall the dividend which is proposed cannot be paid by the company to its shareholders in all the cases.Hence a separate Account is opened for this purpose.-Interim Dividendany amount which i

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.