Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc company is a private company reporting under a

ABC Company is a private company reporting under ASPE. It had the following balances in...

70.2K

Verified Solution

Question

Accounting

ABC Company is a private company reporting under ASPE. It had the following balances in shareholders equity on May 1, 2020:

Shareholders Equity

Contributed Capital

Share Capital

$1.75 Noncumulative preferred shares, 50,000 shares authorized, 30,000 shares issued $ 700,000

Common shares, unlimited number authorized, 450,000 shares issued 2,030,000

Total Contributed Capital $2,730,000

Retained Earnings 2,100,000

Total Shareholders Equity $4,830,000

On May 2, 2020, ABC declared a 5% common stock dividend distributable on July 15 to shareholders of record on June 20. The fair market value of the common shares on May 2, 2020 was $32.50.

Instructions:

Prepare the necessary journal entries to record the common stock dividend

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

A population of 100 birds is in Hardy Weinberg equilibrium There are phenotypes that can...

Statistics
1.2K views

A researcher has a strange habit to use a sample size between √? 3(Cube root of...

Medical Sciences
1.2K views

What is the clinical significance of recticulocyte count

Mechanical Engineering
1.2K views

A plane wall has thickness of 5 cm, thermal conductivity of 2 W/mK and generates heat....

Advance Math
1.2K views

Let A be an infinite set and let B ? A be a subset. Prove: (a)...

Advance Math
1.2K views

Find the line y = b + mx of best fit through the data {(.1, .2),(.2,...

Basic Math
1.2K views

18 1 point Consider this amortization table for the first six months of a 195000...

Basic Math
1.2K views

Solve the inequalityx +4| < |x| Hint: use the fact that |x| = ? and...

Algebra
1.2K views

If the standard deviation of a population is 4 a 4 what happens to the...

Algebra
1.2K views

iii Write the elements a3 a21 a332 a242 a23 2 If a matrix has 24...

Accounting
1.2K views

Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and...

Finance
1.2K views

Referring to the standards that mention in the table below, compare between bond and common...