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1. Problem 10-85A (Algorithmic) Common Dividends

   Pumpkin Accounting Corp. began 2019 with 1,000,000 authorized and 231,000 issued and outstanding $10 par common shares. During 2019, Pumpkin entered into the following transactions:

   1. Declared a $0.40 per-share cash dividend on March 10.
   2. Paid the $0.40 per-share dividend on April 10.
   3. Repurchased 8,000 common shares at a cost of $24 each on May 2.
   4. Sold 3,000 unissued common shares for $26 per share on June 9.
   5. Declared a $0.55 per-share cash dividend on August 10.
   6. Paid the $0.55 per-share dividend on September 10.
   7. Declared and paid a 10% stock dividend on October 15 when the market price of the common stock was $28 per share.
   8. Declared a $0.60 per-share cash dividend on November 10.
   9. Paid the $0.60 per-share dividend on December 10.

   Required:

   1. Prepare journal entries for each of these transactions.

   2019 a. Mar. 10	Accounts Payable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	Accounts Payable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	(Record liability for dividends)
   b. Apr. 10	Accounts Payable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	Accounts Payable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	(Record payment of dividends)
   c. May 2	Accounts Payable Accounts Receivable Cash Dividends Payable Treasury Stock
   	Accounts Payable Accounts Receivable Cash Dividends Payable Treasury Stock
   	(Record purchase of treasury shares)
   d. June 9	Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock Retained Earnings (or Dividends)
   	Accounts Payable Additional Paid-In Capital-Preferred Stock Common Stock Retained Earnings (of Dividends) Treasury Stock
   	Accounts Receivable Additional Paid-In Capital-Common Stock Additional Paid-In Capital- Preferred Stock Retained Earnings (or Dividends) Treasury Stock
   	(Record reissue of treasury shares)
   e. Aug. 10	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	(Record liability for dividends)
   f. Sept. 10	Accounts Receivable Cash Dividends Payable Preferred Stock Treasury Stock
   	Accounts Payable Accounts Receivable Cash Dividends Payable Treasury Stock
   	(Record payment of dividends)
   g. Oct. 15	Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock Retained Earnings
   	Accounts Payable Additional Paid-In Capital-Preferred Stock Common Stock Retained Earnings Treasury Stock
   	Accounts Receivable Additional Paid-In Capital-Common Stock Additional Paid-In Capital-Preferred Stock Retained Earnings Treasury Stock
   	(Record small stock dividend)
   h. Nov. 10	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	(Record liability for dividends)
   i. Dec. 10	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	Accounts Receivable Cash Common Stock Dividends Payable Retained Earnings (or Dividends)
   	(Record payment of dividends)

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   2. Determine the total dollar amount of dividends (cash and stock) for the year. $

   3. Conceptual Connection: Determine the effect on total assets and total stockholders' equity of the dividend transactions.

   Note the following:

   1. If applicable, select the dividend transaction effect (e.g. "Affects assets", "Affects stockholders' equity", "No effect" or "Not a dividend transaction").
   2. Enter decreases in assets or equity as negative numbers.
   3. If a cell does not require an answer, leave it blank.

   Transaction		Effect on Assets	Effect on Stockholders' Equity
   a.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   b.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   c.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   d.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   e.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   f.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   g.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   h.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   i.	Affects assets Affects stockholders' equity No effect Not a dividend transaction	$	$
   	Total effect	$	$

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