onnect IN Question 6 (of 15) The following information applies to the questions

Question

onnect IN Question 6 (of 15) The following information applies to the questions displayed below he annual report for Malilbu Beachwear reported the following transactions affecting stockholders equity a. Purchased $350.900 of common stock now held in treasury b. Declared cash dividends in the amount of $260,450 c. Pald the dividends in (b). d. Issued 109,000 new shares of $010 par value common shares for $2 per share. e. Closed the Dividends account value 2.00 points 2. Prepare journal entries to record each of these events. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of $350,900 common stock.

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit Share Capital $3,50,900.00 a)         To Cash Account $3,50,900.00 (Being Common Stock is purchased and kept in trasury stock) b) Dividend Account $2,60,450.00          To Dividend Payable $2,60,450.00 (Being dividend is declared) Dividend Payable $2,60,450.00 c)          To Cash Account $2,60,450.00 (Being dividend is paid) d) Cash Account $2,18,000.00      To Share Capital $10,900.00      To Excess Capital over Par value $2,07,100.00 (Being shares are issued over par value) e) Retained Earning $2,60,450.00        To Dividend Account $2,60,450.00 (Being divident Account is closed)

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