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| Guillen Corporation | Note | |
| Number of shares on January 1 | 95,000.00 | A |
| Add: Issued on April 1 | 25,000.00 | B |
| Number of shares outstanding on April 1 | 120,000.00 | C=A+B |
| Dividend per share declared on June 15 | 1.00 | D |
| Dividend paid on July 10 | 120,000.00 | E=C*D |
| Number of shares outstanding on April 1 | 120,000.00 | See C |
| Add: Issued on Dec 1 | 2,000.00 | F |
| Number of shares outstanding on Dec 1 | 122,000.00 | G=C+F |
| Dividend per share declared on Dec 15 | 1.20 | H |
| Dividend payable on Dec 31 | 146,400.00 | I=G*H |
| Treatment/ Reporting | ||
| Total Dividend expense for the year | 266,400.00 | J= E+I |
| This amount will be shown in the retained earnings statement. It will be deducted from the retained earnings balance. | ||
| Dividend payable on Dec 31 | 146,400.00 | See G |
| It is a current liability. It will be shown in Balance Sheet. |
CALCULATOR PULL SCREEN PRINTER VERSION 4 BACK Exercise 14-01 (Essay) On January 1, Guillen Corporation had...
Exercise 14-01 b (Essay) 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 shere. During the year, the following occurred. Apr. 1 Issued 25.000 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 2,000 additional shares of common...
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E14-1 & E14-2
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