On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued a

Question

On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following transactions occurred:- I Issued 10,000 additional shares of common stock for $10 Apr 1 per share Jun 15Declared a cash dividend of $1.50 per share to stockholders of record on June 30. Jul 10 Paid the $1.50 cash dividend Dec. 1 Issued 4,000 additional shares of common stock for $12 per share Declared a cash dividend on outstanding shares of $1.50 per share to stockholders of record on December 31 Dec. 15

Explanation / Answer

Journal entries :

Date accounts & explanation debit credit Apr 1 Cash a/c (10000*10) 100000     Common stock a/c (10000*5) 50000     Paid in capital in excess of stated value-common stock 50000 (To record issuance of common stock) June 15 Dividend a/c 105000     Dividend payable a/c (60000+10000)*1.5 105000 (To record dividend declared) June 30               No entry Jul 10 Dividend payable a/c 105000       Cash a/c 105000 (To record dividend paid) Dec 1 Cash a/c (4000*12) 48000    Common stock a/c (4000*5) 20000    Paid in capital in excess of stated value-common stock 28000 (To record issue common stock) Dec 15 Dividend a/c (74000*1.5) 111000      Dividend payable a/c 111000 (To record dividend declared) Dec 31                           No entry

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