Problem - Altuve Co. was incorporated on January 1, 2016, at which time 250,000 shares of $1 par value common stock were authorized, and 140,000 of these shares were issued for $12 per share. Net income for the year ended December 31, 2016, was $1,200,000. Altuve Co.'s board of directors declared dividends of $2 per share of common stock on December 31, 2016, payable on February 7,2017.
Use the horizontal model (or write the entry) to show the effects of:
a. The issuance of common stock on January 1, 2016.
b. The declaration of dividends on December 31, 2016.
c. The payment of dividends on February 7, 3017.