On January 1, Guillen Corporation had 95,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $7 per share. During the year, the following occurred.

Apr. 1 Issued 26,000 additional shares of common stock for $17 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 2,500 additional shares of common stock for $20 per share.

15 Declared a cash dividend on outstanding shares of $2.10 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.)

Answer and Explanation:

The journal entries are shown below:

On Apr 1

Cash $442,000 (26,000 shares * $17)

To Common Stock $182,000 (26,000 shares * $77)

To Paid-in Capital Excess of stated Value-Common Stock $260,000

(26,000 shares * $10)

(Being the issuance of the additional shares of common stock is recorded)

On Jun 15

Cash dividends $121,500 (95,500 shares + 26,000 shares) * $1

To Cash dividends payable $121,500

(Being the dividend declared is recorded)

On Jul 10

Cash dividends payable $121,500 (95,500 shares + 26,000 shares) * $1

To Cash $121,500

(Being the cash dividend paid is recorded)

On Dec 1

Cash $50,000 (2,500 shares * $20)

To Common Stock $17,500 (2,500 shares * $7)

To Paid-in Capital Excess of stated Value-Common Stock $32,500 (2,500 shares * $13)

(Being the issuance of the additional shares of common stock is recorded

On Dec 15

Cash dividends $260,400 (95,500 shares + 26,000 shares + 2,500 shares) * $2.10

To Cash dividends payable $260,400

(Being the dividend declared is recorded)