On June 1, Meyers Hotel Corporation had 80,000 shares of no par common stock issued and outstanding. The stock has a stated value of $10 per share. During the year, the following occurred:
|
Jul. 1 |
Issued 10,000 additional shares of common stock. |
|
Aug. 1 |
Declared a cash dividend of $1.50 per share to stockholders of record on Au gust 30. |
|
Oct. 1 |
Paid the $1.50 per share cash dividend. |
|
Nov. 3 |
Issued 2,500 additional shares of common stock. |
|
Dec. 3 |
Declared a cash dividend on outstanding shares of $1.60 per share to stock holders of record on December 31. |
Instructions
(a) Prepare the entries, if any, on each of the three dividend dates.
(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?