Record the declaration and payment of dividends

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Reference no: EM133210653

Question: Al-Can Products, Inc. received its charter on January 2 of the current year. The corporation is authorized to issue 500,000 shares of $5.00 stated value common stock and 100,000 shares of 10%, $100.00 par value stock.

Journalize the following business transactions for Al-Can Products, Inc.
Start Microsoft Excel, and open the BUS114_15_01.xlsx file from C:ACTT2DataUnit_15.
Click the File tab, and click Save As. Save the file to C:ACTT2StudentUnit_15.
Navigate to the appropriate spreadsheet tab for the journal in which you will post.
Journalize the following transactions:
January 10. Received cash from three incorporators for 75,000 shares of common stock, $375,000.00. R1-3.
January 10. Paid cash to Aaron Lovell as a reimbursement for organization costs, $10,000. C1.
January 10. Received a subscription from Amory Lin for 10,000 shares of common stock, $50,000.00. M1.
January 15. Received cash for the face value of a 5-year, 10%, $1,000.00 par value bond issue, $50,000.00. R11.
January 25. Received a subscription from Peter Lavine for 8,000 shares of common stock, $40,000.00. M2.
February 14. Received cash from Amory Lin in partial payment of stock subscription, $25,000. R4.
March 15. Paid cash to Peter Lavine for 500 shares of common stock at $10.00 per share. C112.
March 20. Received cash from Amory Lin in final payment of stock subscription, $25,000.00. R5.
March 20. Issued Stock Certificate No. 34 to Amory Lin for 10,000 shares of common stock, $50,000.00. M3.
At the end of the year, Al-Can Products, Inc. had issued 250,000 shares of common stock and 20,000 shares of preferred stock. On November 15, the board of directors voted to declare dividends of $200,000.00. Calculate the total amount of dividends for preferred and common stock.

Journalize the following transactions to record the declaration and payment of dividends.

November 1. Board of directors declared annual dividends of $250,000.00. Date of payment is December 30. M25.

December 30. Paid cash for annual dividends declared November 1, $250,000.00. C587.

Save and close the spreadsheet.

Reference no: EM133210653

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