The following transactions took place in 2015 for Dahmer Corp. Jan, 2 Issued 20,
ID: 2485609 • Letter: T
Question
The following transactions took place in 2015 for Dahmer Corp. Jan, 2 Issued 20,000 shares of $1 par value common stock for $50,000.. Mar, 15 Declared dividend of $3 per share on the outstanding shares of common stock to shareholders of record as of March 25. Assume that there were 50,000 shares of outstanding stock as of March 15. Apr. 1 Paid dividends declared March 15. July 1 Reacquired 10,000 shares of its own stock at $9. Sept. 1 Declared and issued a 10% stock dividend on the outstanding common stock. The fair market value of a common share of Dahmer Corp. was $14.Explanation / Answer
Date
Account tiles and description
Debit
Credit
Jan, 2
Cash
50000
Common equity
20000
Additional paid in capital
30000
March 15
Retained earnings
150000
Dividend payable
150000
April 1
Dividend payable
150000
cash
150000
July 1
Common stock
10000
Additional paid in capital
80000
cash
90000
Sept 1
Stock dividend
14000
cash
14000
Date
Account tiles and description
Debit
Credit
Jan, 2
Cash
50000
Common equity
20000
Additional paid in capital
30000
March 15
Retained earnings
150000
Dividend payable
150000
April 1
Dividend payable
150000
cash
150000
July 1
Common stock
10000
Additional paid in capital
80000
cash
90000
Sept 1
Stock dividend
14000
cash
14000
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