On March 1, 2010, Dora Corporation began operations with a charter it received from the state that authorized 50,000 shares of $4 par value common stock. Over the next quarter, the firm engaged in the transactions that follow.
March 1 issued 15000 shares of common stock, $100000
2 paid fees associated with obtaining the charter and starting up and
organizing the corporation, $12000
April 10 issued 6500 shares of common stock $65000
15 purchased 2500 shares of common stock $25000
May 31 the board of directors declared a $0.20 per share cash dividend to be pain on June 15 to shareholders of record on June 10
1. Record the above transactions in T accounts
2. Prepare the stockholders' equity section of Dora Corporation's balance sheet on May 31, 2010. Net income earned during the first quarter was $15,000.
3. What effect, if any, will the cash dividend declaration on May 31 have on Dora Corporation's net income, retained earnings, and cash flows in the current period?