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2 March, 04:25

On January 1, Guillen Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.

Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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  1. 2 March, 04:44
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    Apr. 1 Issued 20,000 additional shares of common stock for $16 per share.

    Dr Cash 320,000 ( = 20,000 x $16)

    Cr Common stock 320,000

    June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.

    Dr Retained earnings 42,875 ( = 42,875 x $1)

    Cr Dividends payable 42,875

    July 10 Paid the $1 cash dividend.

    Dr Dividends payable 42,875

    Cr Cash 42,875

    Dec. 1 Issued 1,000 additional shares of common stock for $20 per share.

    Dr Cash 20,000 ( = 1,000 x $20)

    Cr Common stock 20,000

    Dec. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.

    Dr Retained earnings 179,887.50 ( = 43,875 stocks x $4.10)

    Cr Dividends payable 179,887.50
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