On May 10, Century Realty Inc. issued for cash 90,000 shares of no-par common stock (with a stated value of $30) at $42. On September 3

On May 10, Century Realty Inc. issued for cash 90,000 shares of no-par common stock (with a stated value of $30) at $42. On September 3, Century Realty Inc. issued at par value 36,000 shares of preferred 1% stock, $25 par for cash. On December 1, Century Realty Inc. issued for cash 14,000 shares of preferred 1% stock, $25 par at $33.

Journalize the entries to record the May 10, September 3, and December 1 transactions.


Answer:













May 10 Cash (90,000 shares × $42) 3,780,000
Common Stock (90,000 shares × $30) 2,700,000
Paid-In Capital in Excess of Stated Value—
Common Stock [90,000 shares × ($42 – $30)] 1,080,000
Sept. 3 Cash 900,000
Preferred Stock (36,000 shares × $25) 900,000
Dec. 1 Cash (14,000 shares × $33) 462,000
Preferred Stock (14,000 shares × $25) 350,000
Paid-In Capital in Excess of Par—
Preferred Stock [14,000 shares × ($33 – $25)] 112,000



The declaration, record, and payment dates in connection with a cash dividend of $1,250,000 on a corporation’s common stock are August 1, October 15, and November 14. Journalize the entries required on each date.


Answer:










Aug. 1 Cash Dividends 1,250,000
Cash Dividends Payable 1,250,000
Oct. 15 No entry required.
Nov. 14 Cash Dividends Payable 1,250,000
Cash 1,250,000