Question

On January 1, 2018, Marshall Corporation had 83,000 common shares, recorded at $599,000, and retained earnings of $1,013,000. During the year, the following transactions occurred:

Apr.	2		Issued 5,100 common shares at $20 per share.
June	15		Declared a cash dividend of $0.35 per share to common shareholders of record on June 30, payable on July 10.
Aug.	21		Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $21 a share on August 21, $24 on September 5, and $27 on September 20.
Nov.	1		Issued 3,000 common shares at $25 per share.
Dec.	20		Declared a cash dividend of $0.40 per share to common shareholders of record on December 31, payable on January 10.

(a)

.

Record the above transactions for 2018. (Note: Closing entries are not required.) (Credit account titles are automatically indented when the 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. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

also number of common stock?

Answer 1

Solution:

Marshall Corporation - Journal Entries
Date	Particulars	Debit	Credit
2-Apr	Cash Dr	$102,000.00
	To Common stock		$102,000.00
	(To record issue of common stock)
15-Jun	Dividends Dr (88100*$0.35)	$30,835.00
	To Dividend payable		$30,835.00
	(Being dividend declared)
10-Jul	Dividend payable Dr	$30,835.00
	To Cash		$30,835.00
	(Being dividend paid)
21-Aug	Stock dividend Dr (88100*5%*$21)	$92,505.00
	To Common stock dividend distributable		$92,505.00
	(To record stock dividend declared)
20-Sep	Common stock dividend distributable Dr	$92,505.00
	To Common stock		$92,505.00
	(To record distribution of stock dividend)
1-Nov	Cash Dr	$75,000.00
	To Common stock		$75,000.00
	(To record issue of common stock)
20-Dec	Dividends Dr (95505*$0.40)	$38,202.00
	To Dividend payable		$38,202.00
	(Being dividend declared)

Nos of common stock on 31.12.2018 = (83000 + 5100) * 105% + 3000 = 95505 shares