Journal entries for dividends. Prepare journal entries for the following transactions of Watt Corporation. The firm has 20,000 shares of $15 par value common stock outstanding on January 1, 2008. The balance in the Additional Paid In Capital account on this date is $200,000.
a. Declares a cash dividend of $0.50 per share on March 31, 2008.
b. Pays the dividend in part a on April 15, 2008.
c. Declares and distributes a 10% stock dividend on June 30, 2008. The market price of the stock is $20 on this date.
d. Declares a cash dividend of $0.50 per share on September 30, 2008.
e. Pays the dividend in part d on October 15, 2008.
f. Declares a three for two stock split on December 31, 2008, but does not alter the par value.