Question: On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
Apr: 1 Issued 25,000 additional shares of common stock for $ 17 per share.
June: 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.
July 10: Paid the $1 cash dividend.
Dec: 1 Issued 2,000 additional shares of common stock for $ 19 per share.
15 Declared a cash dividend on outstanding shares of $ 1.20 per share to stockholders of record on December 31.
Instructions: a. Prepare the entries to record these transactions.
b. How are dividends and dividends payable reported in the financial statements prepared at December 31?