Reference no: EM132605931

Questions -

Q1) Fowler Co.'s balance sheet showed the following at December 31, 2021:

Common stock, $10 par $105,000

Paid-in capital-excess of par 52,500

Retained earnings 21,000

A cash dividend is declared on December 31, 2021, and is payable on January 20, 2022, to shareholders of record on January 10, 2022.

Required -

1. Prepare appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share.

2. Prepare appropriate journal entries, assuming a cash dividend in the amount of $5.00 per share.

Q2) During the current year JET Industries issued 4.00 million of its $1 par common shares to its underwriters for $24,000,000 less promotional and accounting services of $400,000 to effect the issue.

Required - Prepare the journal entry to record the issuance of the shares.