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David Corporation: Record estimated taxes dividend

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David Corporation: Record estimated taxes dividend declaration payment 2013

Date Transaction
Mar 15 File the federal income tax return for 2012. The total tax for the year was $125,250. During 2012, quarterly deposits of estimated tax totaling $120,000 had been made. The additional tax of $5,250 was paid with the return. On December 31, 2012, the accountant had estimated the total for 2012 to be $123,600 and had recorded a liability of $3,600 for federal income tax payable.
Apr 15 Paid first quarterly installment of $32,000 on 2013 estimated federal income tax.
May 3 Declared dividend of $0.25 per share on the 40,000 shares of common stock outstanding. The dividend is payable on June 2 to stockholders of record as of May 20, 2013
Jun 2 Paid dividend declared on May 3
15 Paid second quarterly installment of $32,000 on 2013 estimated federal income tax.
Sept 15 Paid third quarterly installment of $32,000 on 2013 estimated federal income tax.
Nov 2 Declared dividend of $0.25 per share on 40,000 shares of common stock outstanding. The dividend is payable on December 2 to holders of the record on November 20.
Dec 2 Paid dividend declared on November 2.
15 Paid fourth quarterly installment of $32,000 on 2013 estimated income tax.
31 Total income tax for 2013 was $128,940. Record as an adjustment the difference between this amount and the total quarterly deposits.

Selected transactions of David Corporation during 2013 follow. Record them in the general journal. Analyze: What annual per share dividend was paid to common stockholders in 2013?

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Solution Summary

See journal entries attached with some commentary about the entry for estimated taxes for each quarter.

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David Corporation: Record estimated taxes dividend declaration payment 2013

Date Transaction
Mar 15 File the federal income tax return for 2012. The total tax for the year was $125,250. During 2012, quarterly deposits of estimated tax totaling $120,000 had been made. The additional tax of $5,250 was paid with the return. On December 31, 2012, the accountant had estimated the total for 2012 to be $123,600 and had recorded a liability of $3,600 for ...

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