Ex. 304
The equity section of Foley Corporation at December 31, 2013, included the following:
4% Share capital–preference, $100 par value, cumulative,
10,000 shares authorized, 8,000 shares issued and outstanding.............$ 800,000
Share capital–ordinary, $10 par value, 250,000 shares
authorized, 200,000 shares issued and outstanding .....................2,000,000
Dividends were not declared on the preference shares in 2013 and are in arrears.
On September 15, 2014, the board of directors of Foley Corporation declared dividends on the preference shares for 2013 and 2014, to shareholders of record on October 1, 2014, payable on October 15, 2014.
On November 1, 2014, the board of directors declared a $.90 per share dividend on the ordinary shares, payable November 30, 2014, to shareholders of record on November 15, 2014.
Instructions
Prepare the journal entries that should be made by Foley Corporation on the dates indicated below:
September 15, 2014November 1, 2014
October 1, 2014November 15, 2014
October 15, 2014November 30, 2014
Ex. 305
Richman Corporation has 120,000 ordinary shares with a €5 par value outstanding. It declared a 15% share dividend on June 1 when the market price per share was €12. The shares were issued on June 30.
Instructions
Prepare the necessary entries for the declaration and payment of the share dividend.