Scribd
Upload
77 views1 page

Problem 18-8: ©dr. Chula King All Rights Reserved

The document describes several journal entries for Cupola Fan Corporation: 1) Issuance of 30,000 shares of Class B stock for $385,000 on June 30, 2013, with $1,500 in issue costs. 2) Declaration of a $2 per share dividend on the 30,000 shares outstanding on December 1, 2013, totaling $60,000. 3) Payment of the $60,000 dividend on December 31, 2013. 4) Retirement of 3,000 shares (10% of 30,000) on July 1, 2014 for $39,500, reducing common stock and paid-in capital.

Uploaded by

Fred The Fish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
77 views1 page

Problem 18-8: ©dr. Chula King All Rights Reserved

The document describes several journal entries for Cupola Fan Corporation: 1) Issuance of 30,000 shares of Class B stock for $385,000 on June 30, 2013, with $1,500 in issue costs. 2) Declaration of a $2 per share dividend on the 30,000 shares outstanding on December 1, 2013, totaling $60,000. 3) Payment of the $60,000 dividend on December 31, 2013. 4) Retirement of 3,000 shares (10% of 30,000) on July 1, 2014 for $39,500, reducing common stock and paid-in capital.

Uploaded by

Fred The Fish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem 18-8

During its first year of operations, Cupola Fan Corporation issued 30,000
of $1 par Class B shares for $385,000 on June 30, 2013. Share issue
costs were $1,500. One year from the issue date (July 1, 2014), the
corporation retired 10% of the shares for $39,500.
Part 1: Prepare the journal entry to record the issuance of the shares.
shares
6/30/13 Cash 385,000
Common stock (30,000 x $1) 30,000
Paid-in capital-excess of par (plug) 355,000
Paid-in capital-excess of par 1,500
Cash 1,500
(stock issue costs)

©Dr. Chula King


All Rights Reserved

Problem 18-8 (continued)


Part 2: Prepare the journal entry to record the declaration of a $2 per
share dividend on December 1, 2013.
12/1/13 Retained earnings (30,000 x $2) 60,000
Dividend payable 60,000
Part 3: Prepare the journal entry to record the payment of the dividend
on December 31, 2013.
12/31/13 Dividend payable 60,000
Cash 60,000
Part 4: Prepare the journal entry to record the retirement of the shares.
7/1/14 Common stock [(10% x 30,000) x $1] 3,000
Paid-in capital-excess of par* 35,350
Retained earnings (plug) 1,150
Cash (given) 39,500
*(10% x $353,500)
©Dr. Chula King
All Rights Reserved

You might also like