eBook Calculator Instructions General Journal Instructions Cash Dividends and In
ID: 2520911 • Letter: E
Question
eBook Calculator Instructions General Journal Instructions Cash Dividends and Income Taxes 1. Prepare journal entries for the transactions. f an amount box does not require an entry, leave it blank. During the year ended December 31, 20-2, Bebeto Company completed the following selected transactions: Apr. 15 Estimated that its 20-2 income tax will be $30,320. Based on this estimate, it will make four quarterly payments of $7,580 each on April 15, June 15, September 15, and December 15. Made the first payment. 25 Declared a semiannual dividend of so.3 per share on common stock to sharehoiders of record on May 10, payable May 20. Currently, 86,800 shares of $1 par common stock are outstanding. May 20 Paid the cash dividends June 15 Made estimated tax payment of $7,580 Sept. 15 Made estimated tax payment of $7,580. Declared semiannual dividend or $0.3 per share on common stock to shareholders of record on November 10, payable on November 20 Oct. 25 Nov. 20 Paid the cash dividends.Explanation / Answer
Date: April 15
Entry: Income Tax Expense A/C (Dr.) $7580
To Income Tax Payable A/C (Cr.) $7580
Date: April 25
Entry: Dividend Expense A/C (Dr.) $260400 (86800*1*0.3)
To Dividend Payable A/C (Cr.) $26040 (86800*1*0.3)
Date: May 20
Entry: Dividend Payable A/C (Dr.) $260400 (86800*1*0.3)
To Bank A/C (Cr.) $26040 (86800*1*0.3)
Date: June 15
Entry: Income Tax Expense A/C (Dr.) $7580
To Income Tax Payable A/C (Cr.) $7580
Date: Sep 15
Entry: Income Tax Expense A/C (Dr.) $7580
To Income Tax Payable A/C (Cr.) $7580
Date: Oct 25
Entry: Dividend Expense A/C (Dr.) $260400 (86800*1*0.3)
To Dividend Payable A/C (Cr.) $26040 (86800*1*0.3)
Date: Nov 20
Entry: Dividend Payable A/C (Dr.) $260400 (86800*1*0.3)
To Bank A/C (Cr.) $26040 (86800*1*0.3)
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