Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.

dwardson Corporation’s year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discount

No. Account Titles and Explanation Debit Credit
1.
2.
3.
4.

 

Brief Exercise 15-13

Green Day Corporation has outstanding 413,900 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $72 per share.

Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit
Declaration Date.
Distribution Date.

 

 

 

 

 

 

 

 

 

Brief Exercise 15-2

Swarten Corporation issued 730 shares of no-par common stock for $11,740.

Prepare Swarten’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $3 per share.

No. Account Titles and Explanation Debit Credit
(a)
(b)

 

Exercise 15-21

The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of $102 par value, 6% preferred, and 6,000 shares of $52 par value common.

Assuming that the company has retained earnings of $110,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.

(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

Preferred Common
$ $

(b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

Preferred Common
$ $

(c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

Preferred Common
$ $

 

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