On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following transactions occurred:

On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following transactions occurred: Apr. 1 Issued 10,000 additional shares of common stock for $10 per share. June 15 Declared a cash dividend of $1.00 per share to stockholders of record on June 30. July 10 Paid the $1.00 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. 15 Declared a cash dividend on outstanding shares of $1.00 per share to stockholders of record on December 31.

(a) Your answer is correct. Prepare the entries, if any, on each of the three dates that involved dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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 June 15 July 10 Dec. 15 June 15 July 10 Dec. 15 June 15 July 10 Dec. 15

How are dividends and dividends payable reported in the financial statements prepared at December 31?

In the retained earnings statement,  Dividends Payable Dividends  of $  will be  deducted added .

In the balance sheet,  Dividends Payable Dividends of $  will be reported as a  current asset current liability .

If bonds are issued at a discount, it means that the

A patent should

be amortized over its useful life or 20 years, whichever is longer.

be amortized over its useful life or 20 years, whichever is shorter.

be amortized over a period of 20 years.

not be amortized.

If a corporation issued bonds at an amount less than face value, it indicates that the corporation has a weak credit rating.

True

False

Notes payable are often used instead of accounts payable.

True

False

If bonds are issued at a discount, it means that the

market interest rate is lower than the contractual interest rate.

bondholder will receive effectively less interest than the contractual rate of interest.

financial strength of the issuer is suspect.

market interest rate is higher than the contractual interest rate.