The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2016: Annapolis engaged in the following dividend transactions during 2016, 2017, and 2018:
2016: Dividends are in arrears for 2014 and 2015. On December 1, 2016, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a
$1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2016.
2017: On December 1, 2017, the annual cash dividend on the preferred stock was declared.
The dividend was paid on December 31, 2017.
On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2018. The market price per share for the common stock on December 10, 2017, was $28.
2018: On January 25, 2018, the stock dividend declared on December 10, 2017, was issued.
On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2019.
In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2019. The market price per share for the common stock on December 1, 2018, was $23.
No other stock transactions took place during 2016, 2017, or 2018.
Required:
Prepare the entries to record the dividend transactions for 2016, 2017, and 2018. Do not record any transactions for
2019.)

Question

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2016:  Annapolis engaged in the following dividend transactions during 2016, 2017, and 2018:
2016: Dividends are in arrears for 2014 and 2015. On December 1, 2016, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a
$1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2016.
2017: On December 1, 2017, the annual cash dividend on the preferred stock was declared.
The dividend was paid on December 31, 2017.
On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2018. The market price per share for the common stock on December 10, 2017, was $28.
2018: On January 25, 2018, the stock dividend declared on December 10, 2017, was issued.
On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2019.
In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2019. The market price per share for the common stock on December 1, 2018, was $23.
No other stock transactions took place during 2016, 2017, or 2018.
Required:
Prepare the entries to record the dividend transactions for 2016, 2017, and 2018. Do not record any transactions for
2019.)

Quizplus · Accepted Answer

The Answer of The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2016:  Annapolis engaged in the following dividend transactions during 2016, 2017, and 2018:
2016: Dividends are in arrears for 2014 and 2015. On December 1, 2016, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a
$1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2016.
2017: On December 1, 2017, the annual cash dividend on the preferred stock was declared.
The dividend was paid on December 31, 2017.
On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2018. The market price per share for the common stock on December 10, 2017, was $28.
2018: On January 25, 2018, the stock dividend declared on December 10, 2017, was issued.
On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2019.
In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2019. The market price per share for the common stock on December 1, 2018, was $23.
No other stock transactions took place during 2016, 2017, or 2018.
Required:
Prepare the entries to record the dividend transactions for 2016, 2017, and 2018. Do not record any transactions for
2019.)

The Annapolis Corporation's Stockholders' Equity Accounts Have the Following Balances