Question

On January1 Teeter Corporation had 75000 shares of no par common stock issued and outstanding. The stock has a stated value $6 per share. During the year, the following transaction occured.

Apr 1 Issued 8000 additional shares of common stock for $10 per share.

June 15 Declared a cash dividend of $2 per share to stockholders of record on June 30.

July 10 Paid the $2. cash dividend.

Dec 1 Issued 3000 additional shares of commin stock for $12 per share.

Dec 15 Declared a cash dividend on outstanding shares of $2.10 per share to stockholders of revord on December 31.

Answer 1

S No	Accounts Details	Debit	Credit
Apr-01	Cash (8,000 * 10)	$80,000
	Common stock (8,000 * 6)		$48,000
	Paid in capital in excess of par		$32,000
June-15	Dividends (75,000 + 8,000 ) *$2	$166,000
	Dividends Payable		$166,000
July-10	Dividends payable	$166,000
	Cash		$166,000
Dec-01	Cash (3000 *12)	$36,000
	Common Stock (3000*6)		$18,000
	Paid in capital in excess of par		$18,000
Dec-15	Dividends (86,000 * 2.10)	$180,600
	Dividends Payable		$180,600