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Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Mar. 1 Declares a cash dividend of $2 per share. Mar. 30 Pays the cash dividend. Jul. 10 Declares a 5% stock dividend when the stock is trading at $15 per share. Aug. 5 Issues the stock dividend. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1   Retained Earnings Retained Earnings     Cash Dividends Payable Cash Dividends Payable Mar. 30   Cash Dividends Payable Cash Dividends Payable     Cash Cash Jul. 10   Retained Earnings Retained Earnings     Common Stock Dividend Distributable Common Stock Dividend Distributable     Additional Paid-in Capital-Common Stock Additional Paid-in Capital-Common Stock Aug. 5   Common Stock Dividend Distributable Common Stock Dividend Distributable

Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Mar. 1 Declares a cash dividend of $2 per share. Mar. 30 Pays the cash dividend. Jul. 10 Declares a 5% stock dividend when the stock is trading at $15 per share. Aug. 5 Issues the stock dividend. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1   Retained Earnings Retained Earnings     Cash Dividends Payable Cash Dividends Payable Mar. 30   Cash Dividends Payable Cash Dividends Payable     Cash Cash Jul. 10   Retained Earnings Retained Earnings     Common Stock Dividend Distributable Common Stock Dividend Distributable     Additional Paid-in Capital-Common Stock Additional Paid-in Capital-Common Stock Aug. 5   Common Stock Dividend Distributable Common Stock Dividend Distributable

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 40,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions:

Mar. 1 Declares a cash dividend of $2 per share.
Mar. 30 Pays the cash dividend.
Jul. 10 Declares a 5% stock dividend when the stock is trading at $15 per share.
Aug. 5 Issues the stock dividend.

Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.

Mar. 1
 
 Retained Earnings Retained Earnings
 
 
 Cash Dividends Payable Cash Dividends Payable
Mar. 30
 
 Cash Dividends Payable Cash Dividends Payable
 
 
 Cash Cash
Jul. 10
 
 Retained Earnings Retained Earnings
 
 
 Common Stock Dividend Distributable Common Stock Dividend Distributable
 
 
 Additional Paid-in Capital-Common Stock Additional Paid-in Capital-Common Stock
Aug. 5
 
 Common Stock Dividend Distributable Common Stock Dividend Distributable
 
 
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