On January 1 Weiss Corporation had 75,000 shares of no-parcommon stock issued and outstanding. The stock has a stated valueof $5 per share. During the year, the following transactions occurred.
Apr. 1 |
Issued 8,000 additional shares of common stock for$11 per share. |
June 15 |
Declared a cash dividend of $1.50 per share tostockholders of record on June 30. |
July 10 |
Paid the $1.50 cash dividend. |
Dec. 1 |
Issued 4,000 additional shares of common stock for$12 per share. |
Dec. 15 |
Declared a cash dividend on outstanding shares of$1.70 per share to stockholders of record on December 31. |
Prepare the entries, if any, on each of the three dates that involved dividends.
How are dividends and dividends payable reported in the financial statements prepared at December 31?