The journal entry to issue 1,000,000 shares of $5 par common stock for $9 per sh

ID: 2526574 • Letter: T

Question

The journal entry to issue 1,000,000 shares of $5 par common stock for $9 per share on July 2 would be

When a cash dividend is declared, which of the following accounts is credited?

a.Common Stock

b.Cash Dividends Payable

c.Paid-In Capital

d.Cash Dividends

Cash dividends are paid on __________ stock.

a.outstanding

b.authorized

c.issued

d.treasury

All of the following are conditions for a cash dividend except

a.sufficient cash.

b.sufficient retained earnings.

c.formal action by the board of directors.

d.All of these choices are correct.

July 2 Cash 9,000,000 Common Stock 5,000,000 Paid-In Capital in Excess of Par 4,000,000

1) Journal entry :

so answer is a)

2) WHen cash dividend declared account credited is cash dividend payable

so answer is b) Cash dividend payable

3) Cash dividend are paid on outstanding stock

so answer is a) outstanding

4) answer is d) All of these choices are correct.

Date accounts & explanation debit credit Cash 9000000 Common Stock 5000000 Paid in capital in excess of par value 4000000

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