Exercise 11-13 On January 1, Guillen Corporation had 95,000 shares of no-par com

Question

Exercise 11-13 On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 25,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 2,000 additional shares of common stock for $19 per share. 15 Declared a cash dividend on outstanding shares of $1.2 per share to stockholders of record on December 31. Prepare the entries, on each of the three dividend dates. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Date Accounts Titles & Explanation Debit ($) Credit ($) June 15 Retained Earnings 120,000 Dividends Payable [(95,000 + 25,000) * $1] 120,000 July 10 Dividends Payable 120,000 Cash 120,000 Dec 15 Retained Earnings 146,400 Dividends Payable [(95,000 + 25,000 + 2,000) * $1.2] 146,400

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