Question

On January 1^st of this year, the stockholder's equity section in the Slate Gravel Co.  consisted of the following items:

            Common Stock, $1 par value, 1 million shares

            Authorized, 300,000 shares issued & outstanding                   $300,000

            Paid in Capital in Excess of Par (APIC)                                     100,000

            Retained earnings                                                                      500,000

                   Total Stockholder's equity..........                                         $900,000

Based on the information above, prepare journal entries in the spaces below to record the following transactions.  Use good General Journal form, but you may omit explanations:  

April 4            Issued 10,000 shares of stock at $15.00 per share.

June 20       The board of directors declared a $1.00 per share cash dividend payable July 15 to the July 10 stockholder's of record.

July 15           Paid the cash dividend previously declared.

July 22           Issued 5,000 shares of stock for $10.00 per share.

Dec. 18     The board of directors declared a $0.10 per share cash dividend payable January 5th, of next year to the January 1st,stockholder's of record.

Answer 1

Answer

In the books of Slate Gravel Co.
Date		Debit	Credit
4-Apr	Cash (10,000 Shares *$15)	150,000
	Common Stock (10,000 Shares *$1)		10,000
	Paid-in-capital in excess of par (10,000 Shares *$14)		140,000
	(Being shares issued at premium)
20-Jun	Dividend Expense (310,000 Shares * $1 each)	310,000
	Dividend Payable		310,000
	(Being dividend declared @$1 each)
15-Jul	Dividend Payable	310,000
	Cash		310,000
	(Being dividend declared paid)
22-Jul	Cash (5,000 Shares *$10)	50,000
	Common Stock (5,000 Shares *$1)		5,000
	Paid-in-capital in excess of par (5,000 Shares *$9)		45,000
	(Being shares issued at premium)
18-Dec	Dividend Expense (315,000 Shares * $0.1 each)	31,500
	Dividend Payable		31,500
	(Being dividend declared @$0.1 each)