On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:April 1 Issued 20,000 shares of common stock for $200,000.April 15 Issued 10,000 shares of common stock for $125,000.May 12 Purchased 2,500 shares of common stock for $75,000.June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 51. Prepare journal entries for the above transactions.2. Prepared the stockholders’ equity section of Kelly Corporation’s balance sheet as of June 30, 2019. Net income for the period April 1 through June 30 was $150,000.3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income, retained earnings, and cash flows?
On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:
April 1 Issued 20,000 shares of common stock for $200,000.
April 15 Issued 10,000 shares of common stock for $125,000.
May 12 Purchased 2,500 shares of common stock for $75,000.
June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 5
1. Prepare
2. Prepared the
3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income,
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