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Home / Questions / Mertz Motors Corporation has 2,000,000 authorized shares of $10 par value common stock. As

Mertz Motors Corporation has 2,000,000 authorized shares of $10 par value common stock. As

Mertz Motors Corporation has 2,000,000 authorized shares of $10 par value common stock. As of June 30, 20x7, there were 1,000,000 shares issued and outstanding. On June 30, 20x7, the board of directors declared a $0.20 per share cash dividend to be paid on August 1, 20x7, to shareholders of record on July 15, 20x7. Prepare the necessary entries in journal form to be recorded on (a) the declaration date, (b) the record date, and (c) the payment date. (Omit explanations.)

 

 

 

 

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

175.Why must a corporation have sufficient retained earnings before it may declare cash dividends?

 

 

176.The following information relates to the number of common shares of the Nelly Corporation:

 

40,000 Authorized shares

15,000 Unissued shares

  2,500 Treasury shares

 

Calculate the number of outstanding shares from the information given. Show your calculations.

 

 

177.The following information relates to the number of common shares of the Telly Corporation:

 

80,000 Authorized shares

30,000 Unissued shares

  5,000 Treasury shares

 

Calculate the number of outstanding shares from the information given. Show your calculations.

Dec 10 2019 View more View Less

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