Horton Company began business on January 1, 2014 by issuing all of its 1,000,000

Question

Horton Company began business on January 1, 2014 by issuing all of its 1,000,000 authorized shares of its $1 per value common stock for $20 per share. On June 30, they declared a cash dividend of $1 per share to stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 200,000 of its own shares of stock for $25 per share. On December 22 they resold half of these shares for $30 per share. Prepare all of the necessary journal entries to record the events described above (If no entry is required for a transaction/event, select "No Journal entry Required" in the first account field.)

Explanation / Answer

Retained earning     Debit       1,000,000

Dividend payable     credit        1,000,000

[Dividend declared ]

**Dividend amount = 1,000,000 *1 = 1,000,000

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