Problem:
On January 1, 2013, Micro Machines Corporation had 700,000 shares of $3 par value common stock issued and outstanding. During the year, the following transactions occurred:
- June 1 Declared a cash dividend of $1.75 per share to stockholders of record on June 15.
- June 30 Paid the cash dividend.
- July 1 Announced a 2-for-1 stock split to be distributed on August 1.
- Oct. 1 Declared a cash dividend of $0.60 per share.
Required:
Question: Prepare journal entries if necessary to record the above transactions.
Note: Please explain comprehensively and give step by step solution.