During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares for $435,000 on June 30, 2021. Share issue costs were $2,500. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $44,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $3.00 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares for $435,000 on June 30, 2021. Share issue costs were $2,500. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $44,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $3.00 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares for $435,000 on June 30, 2021. Share issue costs were $2,500. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $44,500.
Required:
1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $3.00 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No
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