The work must be cited using the reference listed in the document. APA it is due Feb 16, at 18:30 EST.

Exercise 15-12

Lotoya Davis Corporation has 10.37 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 63 cents 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

 

(b) How would the entry differ if the dividend were a liquidating dividend?
(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.)

Account Titles and Explanation

Debit

Credit

Exercise 15-4

Faith Evans Corporation is a regional company which is an SEC registrant. The corporation’s securities are thinly traded on NASDAQ. Faith Evans Corp. has issued 10,080 units. Each unit consists of a $504 par, 12% subordinated debenture and 10 shares of $5 par common stock. The investment banker has retained 403 units as the underwriting fee. The other 9,677 units were sold to outside investors for cash at $887 per unit. Prior to this sale, the 2-week ask price of common stock was $40 per 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. $38,487. 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.)

(1) Employing the incremental method.
(2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value.

No.

Account Titles and Explanation

Debit

Credit

1.

 

 

 

 

2.