Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 4E
To determine
Prepare a income statement, statement of changes in
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Chapter 12 Exam
Instructions
The declaration, record, and payment dates in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15.
Required:
Journalize the entries required on each date. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to
the next transaction.
General Journal
Journalize the entries required on each date. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to
the next transaction.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
2
3
4
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QUESTION 4
Ukhwah Bhd has 90,000 shares issued. On October 15, the corporation's board of directors
declared a cash dividend of RM0.50 per share payable on 15 November to shareholders of
records on 1 November. Dividend was paid on 15 November 2021.
REQUIRED:
(a) Prepare the journal entries to record the declaration and payment of the cash dividend.
(b) Post all the journal entries (as in (a)) to a ledger accounts / T-accounts.
Exercise 6.4
Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity:
1. Issued 10,000 common stock at OMR 7 per share.
2. Issued 20,000 common stock at OMR 8 per share.
3. Reported a net income of OMR 100,000.
4. Paid dividends of OMR 50,000.
5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8).
Required
• Prepare the journal entries for the above transactions.
• Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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- On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Debit Credit $44,300 47,700 9,100 80,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals $10,600 16,200 16.000 During January 2018, the following transactions occur: January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000 January 9 Provide services to customers on account, $18,800. January Purchase additional supplies on account, $6,500. 10 96,000 42,300 $181,100 $181,100 January 12Repurchase 1,100 shares of treasury stock for $19 per share. January 15Pay cash on accounts payable, $18.100. January 21Provide services to customers for cash, $50,700. January Receive cash on accounts receivable. $18,200. 22 January 29 Declare a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on…arrow_forwardExercise 6.3 The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of OMR 3 million, OMR 6 million, and OMR 20 million in each of its first 3 years of operation: 2017, 2018, 2019, respectively. Common stock, OMR 1 par, 50,000,000 shares outstanding Preferred stock, 5%, OMR 50 par, 2,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preference shares are cumulativearrow_forwardQuestion. Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on December 1, 2018, the board voted to declare a cash dividend of $5 per share to be paid on December 31, 2018, to shareholders of record as of December 16, 2018. Complete the necessary journal entry on the date of declaration by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.arrow_forward
- Entries for cash dividends The declaration, record, and payment dates in connection with a cash dividend of $425,000 on a corporation’s common stock are October 1, November 7, and December 15. Journalize the entries required on each date. If no entry is required, choose "No Entry Required" and leave the amount boxes blank. Date Account Debit Credit Oct. 1 Nov. 7 Dec. 15arrow_forwardEntries for Cash Dividends The declaration, record, add payment dates in connection with a cash dividend of $69,400 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date. If no entry is required, select "No entry required" and leave the amount boxes blank. July 9 Aug. 31 Oct. 1 Previous Next Check My Work 11:57 Al 4/6/202arrow_forwardPractice problem 1-Record the following 6 transactions in the General Journal On April 1, 2018 The corporation issued 3000 shares of common stock with a $5 par for $10. On October 1, 2018 The corporation issued 2000 shares of preferred stock with $7 par for $12 On December 31, 2018 The corporation issued 2000 shares of common stock with $5 par for $35,000 worth of land On December 31, 2018 The corporation pays a cash dividend to the common shareholders to the shareholders above at $1.50 a share On January 04, 2019 The corporation buys back 1000 shares of stock for $30 On March 31, 2020 The corporation reissues 500 shares of the treasury stock for $45 For dates please use format DD/MM/YEAR for numbers format use 1,000.00 use two decimal places no dollar signs.arrow_forward
- Entries for Cash Dividends The declaration record and navment dates in connection with a c y Required" and leave the ar If no ent Cash Jan. 12✔ Cash Dividends Mar. 13 Apr. 12 Cash Dividends Payable Common Stock No Entry Required 000arrow_forwardEntries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $40,600 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. July 9 Aug. 31 Oct. 1 Cash Dividends Payable 40,600 Cash 40600arrow_forward
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