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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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Solution Summary

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

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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 ...

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