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Homework Help: College Accounting

Posted by Janice Edwards on Friday, June 14, 2013 at 12:39pm.

Recording federal income tax transactions and cash dividend transactions. Selected transactions of Divad Corporation during 2013 follow. Record them in the general journal. Analyze: What annual per share dividend was paid to common stockholders in 2013?
Mar. 15 Filed the federal income tax return for 2012. the total tax for the year was $125,250. During 2012, quarterly deposits of estimated tax totaling $120,000 had been made. The additional tax of $5,250 was paid with the return. On December 31, 2012, the accountant had estimated the total tax for 2012 to be $123,600 and had recorded a liability of $3,600 for federal income tax payable.
Apr. 15 Paid first quarterly installment of $32,000 on 2013 estimated federal income tax.
May 3 Declared dividend of $0.25 per share on the 40,000 shares of common stock outstanding. The dividend is payable on June 2 to stockholders of record as of May 20,2013.
June 2 Paid dividend declared on may 3.
June 15 Paid second quarterly installment of $32,000 on 2013 estimated federal income tax.
Sept. 15 Paid third quarterly installment of $ 32,000 on 2013 estimated federal income tax.
Nov. 2 Declared dividend of $0.25 per share on 40,000 shares of common stock outstanding. The dividend is payable on December 2 to holders of record on November 20.
Dec. 2 Paid dividend declared on November 2.
Dec. 15 Paid fourth quarterly installment of $32,000 on 2013 estimated income tax.
Dec. 31 total income tax for 2013 was $128,940. Record as an adjustment the difference between this amount and the total quarterly deposits.

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