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    Armada Corporation

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    On January 1, Armada Corporation had 95,000 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 15,000 additional shares of common stock for $17 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 2,000 additional shares of common stock for $19 per
    share.
    15 Declared a cash dividend on outstanding shares of $1.20 per
    share to stockholders of record on December 31.
    Instructions
    (a) Prepare the entries, if any, on each of the three dividend dates.
    (b) How are dividends and dividends payable reported in the financial statements prepared at
    December 31?

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    https://brainmass.com/business/dividends-stock-repurchase-and-policy/armada-corporation-241537

    Solution Preview

    On January 1, Armada Corporation had 95,000 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 15,000 additional shares of common stock for $17 per share.
    June 15 Declared a cash dividend of $1 per share to stockholders of record on June ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare the entries, if any, on each of the three dividend dates.

    $2.19

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