correctly. Must show all calculations to receive credit. Journal entries should

Question

correctly. Must show all calculations to receive credit. Journal entries should be in proper format. Should be submitted on Canvas. Can be entered in text box or attachment in Word, Excel, or PDF form. No late work accepted. Zinnia Company: Zinnia Company incorporated on January 1, 2017. The company had authorized 1,500,000 shares of common stock, with a par value of $5 per share. The company had the following transactions during 2017: Jan. 15 ssued 50,000 shares of common stock for $8 per share. Sept. 1 Repurchased 5,000 shares of their common stock for $7 per share. Nov. 1 Declared a $.50 per share cash dividend to be paid on Dec. 30 to stockholders of record on Required 1. Prepare the necessary journal entries to record the above transactions. (12 points) Date Account Titles Debit Credit 2. Assume that Zinnia Company declared a 15% stock dividend on Nov. 1 instead of a cash dividend. If the stock was trading at $10 per share on Nov. 1, what journal entry would the company record on Nov. 1? (3 points] Date Account Titles Debit Credit

Explanation / Answer

1) Journal entry :

2) Journal entry :

Date accounts & explanation debit credit Jan 15 Cash (50000*8) 400000 Common Stock (50000*5) 250000 Paid in capital in excess of par value-Common Stock 150000 (To record issue common stock) Sep 1 Treasury Stock (5000*7) 35000 Cash 35000 (To record treasury Stock purchased) Nov 1 Cash dividend (45000*.50) 22500 Cash dividend payable 22500 (To record dividend declared) Dec 1 No entry Dec 30 Cash dividend payable 22500 Cash 22500 (To record dividend paid)

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