On January 1, Whispering Winds Corp. had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 28,500 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.20 per share to stockholders of record on December 31.

Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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aquialaska aquialaska · Answer 1 · 2020-05-13T05:45:26+02:00

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $456,000

(28,500 × $16)

To additional paid in capital in excess of par $313,500

To common stock $142,500

(28,500 × $5)

(Being issuance of common stock is recorded)

2. Cash Dividend Dr, $118,500

(90,000 + 28,500) × $1

To Dividend payable $118,500

(Being cash dividend is recorded)

3. Dividend payable Dr,$118,500

To Cash $118,500

(Being cash paid is recorded)

4. Cash $20,000

(1,000 × $20)

To additional paid in capital in excess of par $15,000

To Common stock $5,000

(1,000 × $5)

(Being issuance of common stock is recorded)

5. Cash dividend $497,700

((90,000 + 28,500) × $4.20)

To Dividend payable $497,700

Being dividend declared is recorded)