Question - King Corp. has a calendar year. Kings net income before effect of dividends was $1,250,000 for 20x7 and $1,500,000 for 20x8. Kin declared $375,000 dividends on November 15, 20x7. Date of record was January 15, 20x8 and dividends were paid on Feb. 1, 20x8. Stockholders equity at January 1, 207 was $2,500,000.
(a) Prepare journal entries to reflect the (1) dividend declaration, (2) date of record, and (3) date of payment.
(b) How much was total equity at the end of 20x7 and 20x8?