Analyze effects of dividends onfinancial statements.
Glenco Company had a net income of $250,000 for the year ended December 31, 2006. On January 15, 2007, the board of directors met and declared a dividend of $0.50 per share for each of the 300,000 outstanding shares of common stock. The board voted to make the actual distribution on March 1 to all shareholders ofrecord as of February 1. What is (a) the date of declaration, (b) the date of record, and (c) the date of payment? If Glenco Company were to prepare a balance sheet on January 30, 2007, how would it report the dividends (if at all)?