Wagner Corporation was authorized to issue 100,000 shares of $12 par common stock. During 2013 Wagner issued 20,000 shares at a market price of $18 per share. On December 1, 2013 Wagner declared a cash dividend of $2.50 per share payable on December 30 to stockholders of record as of December 15.
Required:
a) Prepare the journal entry for the issuance of the 20,000 shares of stock. Assume an issue date of June 30, 2013.
b) Prepare the journal entries necessary on the dividend:
(1) declaration date.
(2) date of record.
(3) payment date.

Question

Quizplus · Accepted Answer

The Answer of Wagner Corporation was authorized to issue 100,000 shares of $12 par common stock. During 2013 Wagner issued 20,000 shares at a market price of $18 per share. On December 1, 2013 Wagner declared a cash dividend of $2.50 per share payable on December 30 to stockholders of record as of December 15.
Required:
a) Prepare the journal entry for the issuance of the 20,000 shares of stock. Assume an issue date of June 30, 2013.
b) Prepare the journal entries necessary on the dividend:
(1) declaration date.
(2) date of record.
(3) payment date.

Wagner Corporation Was Authorized to Issue 100,000 Shares of $12