Question

On January 1, Martinez Corp. had 61,800 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 13,050 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.60 per share to stockholders of record on June 30.
July 10 Paid the $1.60 cash dividend.
Dec. 1 Issued 5,800 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

(a) Prepare the entries, if any, on each of the three dates that involved dividends.

Answer 1

The entries are prepared in a tabular form in the explanation section below

Step-by-step explanation:

From the example, the first step to take is to prepare he entries, if any, on each of the three dates that involved dividends.

Date Account titles and explanation Debit Credit

June 15 Cash Dividends $119,760

Dividends Payable $119,760

July 10 Dividends Payable $119,760

Cash $119,760

Dec. 15 Cash Dividends $161,300

Dividends Payable $161,300