On January 1, Molini Corporation had 95, 000 shares of nopar common stock issued and outstanding. The stock has a statedvalue of $5 per share. During the year, the following occurred.
Apr. 1 Issued 25,000 additional sharesof common stock for $17 per share
June 15 Declared cash divided of $ 1 per share tostock holders of record on June 30.
July 10 Paid $1 Cash dividend
Dec 1 Issued 2,000 additionalshares of common stock for $19 per share
Dec 15 declared a cash dividend on outstandingshares of $1.20 per share to stock holders of record on December31.
Instructions:
- Prepare the entries if any on each of the three dividenddates
- How are dividends and dividends payable reported in thefinancial statements prepared at December 31