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?

March 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 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.

 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.

     15   Paid fourth quarterly installment of $32,000
on 2013 estimated income tax.

     31   Total income tax for 2013 was $128,940.
Record as an adjustment the difference between this amount and the total
quarterly deposits.

Completing a corporate worksheet, recording adjusting and closing
entries, preparing an income statement and balance sheet.

Bruin Corporation has been authorized to issue 5,000 shares of 12
percent noncumulative, nonparticipating preferred stock with a par value of
$100 per share and $200,000 shares of common stock with par value of $10.00 per
share. As of December 31,2013, 1,600 shares of preferred stock and 24,000
shares of common stock had been issued. A condendensed trial balance as of
December 31, 2013, is provided below.

1. Enter the December 31, 2013, trial balance on an eight-column
worksheet. Provide three lines for the Selling Expenses control account and
three lines for the General Expenses control account. Total and rule the Trial
Balance columns.

2. Record the following transactions in general journal form,
using page number 6. a.Ending merchandise inventory is $105,000. Close the
beginning inventory and set up the ending inventory. b.Depreciation of
buildings is $12,500 (&10,000 is selling expense:$2,500 is general
expense). c.Depreciation of equipment is $25,000 ($17,000 is selling expense;
$8,000 is general expense). d.Accrued expenses are $8,000 ($6,000 is selling
expense; $2,000 is general expenses). e.The balance in Allowance for Doubtful
Accounts is adequate. f.The $69,200 balance in Income Tax Expense represents
the quarterly tax deposits. Adjust the Income Tax Expense account using the
following procedure: (1) Extend the adjusted income and expense items to the
Income Statement columns and compute the net income before taxes. (2) Assuming
that taxable income is the same as net income before income taxes, use the tax
rate given in this chapter to compute the federal income tax. Round the
computed tax to the nearest whole dollar. Ignore state and local income taxes.
The tax rates given are:First $50,000 tax rate is 15 percent, Next $25,000 tax
rate is 25%, Next 25,000 tax rate is 34%, Next $235,000 tax rate is 39%, Over
$335,000 see Internal Revenue Service. 3. Prepare a condensed income statement
for the year. 4. Prepare a balance sheet as December 31, 2013. The balance of
Retained Earnings on January 1, 2013, was $168,800. All dividends for the year
were declared on December 5, 2013 and are payable January 4, 2014. 6.
Journalize the adjusting and closing entries on December 31. Analyze: Assume
that dividends were declared in equal amounts over four quarters of 2013. What
percentage of Bruin Corporation's annual income tax was spent on dividends to
stockholders?