On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
|
Apr. 1 |
Issued 25,000 additional shares of common stock for $17 per share. |
|
June15 |
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 2,000 additional shares of common stock for $19 per share. |
|
15 |
Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31. |
Instructions
(a)Prepare the entries, if any, on each of the three dividend dates.
(b)How are dividends and dividends payable reported in the financial statements prepared at December 31?