Question

On January 1, Novak Corp. had 99,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred.

Apr.	1		Issued 25,500 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 3,000 additional shares of common stock for $19 per share.
	15		Declared a cash dividend on outstanding shares of $4.00 per share to stockholders of record on December 31.

(a)

Prepare the entries, on each of the three dividend dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date Apr. 1June 15July 10Dec. 1Dec. 15	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date Apr. 1June 15July 10Dec. 1Dec. 15	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date Apr. 1June 15July 10Dec. 1Dec. 15	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

Answer 1

Journal entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
April 1	Cash (25,500 Shares*$17)	433,500
	Common Stock (25,500 Shares*$4)		102,000
	Paid In Capital excess of Stated Value(25,500 Shares*$13)		331,500
	(Recorded that the common stocks are issued for cash)
June 15	Dividend (99,000 + 25,500)* $1	124,500
	Dividend Payable		124,500
	( Recorded the cash Dividend is declared)
July 10	Dividend Payable	124,500
	Cash		124,500
	(Recorded the cash dividend is paid)
Dec.1	Cash (3000 Shares*$19)	57,000
	Common Stock (3,000 Shares*$4)		12,000
	Paid In Capital excess of Stated Value(3,000 Shares*$15)		45,000
	(Recorded the additional common stock issued for cash)
Dec.15	Dividend(99,000 + 25,500 + 3,000)* $4	510,000
	Dividend Payable		510,000
	(Recorded the dividend declared on all outstanding shares)