1.Record the above transactions for 2018. ( Note: Closing entries are not requir

Question

1.Record the above transactions for 2018. (Note: Closing entries are not required.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
2.What is the number of common shares at the end of the year?

On January 1, 2018, Hiroole Corporation had 84,000 common shares, recorded at $630,000, and retained earnings of $962,000. During the yer, the following transactions occurred Apr. 2 Issued 5,400 common shares at $20 per share June 15 Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10 Aug. 21 Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20, The shares were trading for $22 a share on August 21, $24 on September 5, and $26 on September 20 Issued 2,900 common shares at $25 per share Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10 Nov. 1 Dec. 20

Explanation / Answer

2.What is the number of common shares at the end of the year?

No. of shares = {[(84,000 + 5,400)x 1.05] + 2,900}

.......................= 96,770 shares

Date Account Title and Explanation Debit Credit 2-Apr Cash $108,000 Common Stock* $40,500 Additional Paid in Capital - Common Stock $67,500 (To record issuance of common stock) *$7.5 x 5,400 shares 30-Jun Retained Earnings $22,350 Cash Dividend Payable $22,350 (To record dividend payable) *(84,000 + 5,400) x $0.25 10-Jul Dividend Payable $22,350 Cash $22,350 (To record dividend payable) 5-Sep Retained Earnings [(84,000 + 5,400) x 5%] x $24 $107,280 Stock Dividend Distributable $107,280 (To record stock dividend payable) 20-Sep Stock Dividend Distributable $107,280 Common Stock* $33,525 Additional Paid in Capital - Common Stock $73,755 (To record issuance of common stock) *4470 x $7.5 1-Nov Cash $72,500 Common Stock* $21,750 Additional Paid in Capital - Common Stock $50,750 (To record issuance of common stock) *$7.5 x 2,900 shares 31-Dec Retained Earnings $29,031 Cash Dividend Payable $29,031 (To record dividend payable) *{[(84,000 + 5,400)x 1.05] + 2,900} x $0.30

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