Recording federal income tax transaction in cash dividend transactions,
Selected transactions of Ahmed Corporation during 2010 follow, record them in general Journal.
Analyze: what annual per-share dividend was paid to common stockholders in 2010?
March 15 filed a federal income tax return for 2009, the total tax for the year was 124,000, during 2009, quarterly deposits of estimated tax total of 122,700 had been made. The additional tax of 1,300 was paid with the return, one December 31, 2009 that accountant had estimated the total tax for 2009 the beat 123,600 and had recorded liability of 900.00 for federal income tax payable.
April 15 paid first quarterly installment of 31,000 2010 estimated federal income tax.
May 3 declare dividends of 0.50 per share or 40,000 share common stock outstanding. The dividend is payable on June 2 to stockholders of record as May 20, 2010.
June 2 paid dividends player on May 3.
June 15 paid second quarterly installments, of 31,000 2010 estimated federal income tax.
September 15 paid third quarter installments of 31,001 2010 estimated federal income tax.
November 2 declare dividends of 0.50 per share of 40,000 shares of common stock outstanding. The dividend is payable on December 2 to holders of record on November 20.
December 2 paid dividend declared on November 2.
December 15 paid for quarterly installment of 31,000 2010 estimated income tax.
December 31 total income tax for 2010 was 128,948. Record as an adjustment the difference between this amount, in the total quarterly deposits.