Exercise 15-12
Lotoya Davis Corporation has10.37million shares of common stock issued and outstanding. On June 1 the board of directors voted an63cents per share cash dividend to stockholders of record as of June 14 payable June 30.(a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
6/1

6/14

6/30

Account Titles and Explanation
Debit
Credit

Exercise 15-4
Faith Evans Corporation is a regional company which is an SEC registrant. The corporations securities are thinly traded on NASDAQ. Faith Evans Corp. has issued10080units. Each unit consists of a $504par 12% subordinated debenture and10shares of $5par common stock. The investment banker has retained403units as the underwriting fee. The other9677units were sold to outside investors for cash at $887per unit. Prior to this sale the 2-week ask price of common stock was $40per share. Twelve percent is a reasonable market yield for the debentures and therefore the par value of the bonds is equal to the fair value.(a)Prepare the journal entry to record Evans transaction under the following conditions. (Round answers to 0 decimal places e.g. $38487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit