Question

On January 1 Windsor, Inc. had 74,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following transactions occurred:

Apr. 1		Issued 11,000 additional shares of common stock for $10 per share.
June 15		Declared a cash dividend of $1.00 per share to stockholders of record on June 30.
July 10		Paid the $1.00 cash dividend.
Dec. 1		Issued 6,000 additional shares of common stock for $14 per share.
15		Declared a cash dividend on outstanding shares of $1.00 per share to stockholders of record on December 31. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Prepare the entries, if any, on each of the three dates that involved dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Sheffield Corp. has the following capital stock outstanding at December 31, 2020: 9% Preferred stock, $100 par value, cumulative 12,000 shares issued and outstanding $1,200,000 Common stock, no par, $10 stated value, 570,000 shares authorized, 470,000 shares issued and outstanding 4,700,000 The preferred stock was issued at $125 per share. The common stock was issued at an average per share price of $15. Prepare the paid-in capital section of the balance sheet at December 31, 2020.

Answer 1

Solution:

Question:1

Date	Description	Debit	Credit
Apr. 1	Cash	$ 110,000
	Common Stock		$ 55,000
	Paid-In-Capital Excess of Par-Common Stock		$ 55,000
	( To record issue of common stock)
June. 15	Cash Dividend [(74000+11000)*1]	$    85,000
	Dividend Payable-Common Stock		$ 85,000
	( To record dividend declared)
July. 10	Dividend Payable-Common Stock	$    85,000
	Cash	$             -	$ 85,000
	( To record dividend paid)
Dec.1	Cash	$    84,000
	Common Stock		$ 30,000
	Paid-In-Capital Excess of Par-Common Stock		$ 54,000
	( To record issue of common stock)
Dec. 15	Cash Dividend [(74000+11000+6000)*1]	$    91,000
	Dividend Payable-Common Stock		$ 91,000
	( To record dividend declared)

Question:2

Sheffield Corporation
Partial Balance Sheet
For the Year Ended 31st December, 2020
Stockholder's equity :
Paid in Capital
Capital Stock
9% Preferred stock, $100 par value, cumulative 12,000 shares issued and outstanding	$ 1,200,000
Common stock, no par, $10 stated value, 570,000 shares authorized, 470,000 shares issued and outstanding	$ 4,700,000
Total Capital Stock		$    5,900,000
Additional Paid In Capital
Paid-in capital in excess of par-preferred stock[12000*25]	$     300,000
Paid-in capital in excess of par-common stock [470000*5]	$ 2,350,000
Total additional paid in capital		$    2,650,000
Total Paid-In-Capital		$    8,550,000