Question

Question 4 1.5 pts On September 18th, 2019 Microsoft Corp. announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase over the previous quarter's dividend. The dividend is payable Dec. 12, 2019, to shareholders of record on Nov. 21, 2019. Microsoft has 7.713 shares outstanding. What is the journal entry Microsoft records on September 18th, 2019? [Select) What is the journal entry Microsoft records on November 21, 2019? [Select] What is the journal entry Microsoft records on December 12, 2019? [Select) [Select] DR Retained Earnings $3.932b CR Dividends Payable $3.932b no journal entry required DR Dividends Payable $3.932b CR Cash $3.932b DR Cash $3.9325 CR Dividends Payable $3.932b

Answer 1

Question 4: Requirement l: DR Retained earnings $3.9326 CR Dividends Payable $3.932b Working note: Record the journal entry as on September 18th, 2019 as follows: Credit Account title and explanation Retained earnings (7.71B x $0.51) Dividends Payable Debit 3.932b 3.932b Requirement 2: no journal entry required Requirement 3: DR Dividends Payable $3.9326 CR Cash $3.932b Working note: Record the journal entry as on December 12, 2019 as follows: Credit Account title and explanation Dividends Payable (7.71B < $0.51) Cash Debit 3.932b 3.932b Question 5:

Requirement 1: Calculate before the split balance in the common stock account as follows: Par value Before split balance in common stock = Number of share outstanding = 5.4 b < $0.0000125 = $0.0000675 billion = $67,500 Therefore, before the split balance in the common stock account is $67,500. Requirement 2: Calculate after split shares outstanding as follows: After split shares outstanding = 5.4 billion x 2 =10.8 billion. Therefore, after split shares outstanding are 10.8 billion Requirement 3: Calculate after the split par value as follows: After split par value = $0.0000125 x = $0.00000625 Therefore, after the split par value is $0.00000625. Requirement 4: Calculate after the split the balance in the common stock as follows: After split balance in the common stock | = After split shares outstanding * After the split par value = 10.8 billion $0.00000625 = $0.0000675 billion = $67,500. Therefore, after the split the balance in the common stock is $67,500.