Arrow Streaming Corporation has 10,000 common shares outstanding at January 1, 2016 with a stated value of

Question:

Arrow Streaming has 10,000 common shares outstanding at January 1, 2016 with a stated value of $100,000. On April 1, Arrow Streaming declared a 10 per cent share payable on April 15 to shareholders of record on April 10. The market value of Arrow's shares on April 1 was $15. On June 1, the company declared a $2 cash per share to common shareholders of record on June 10, and paid the on June 30. Assume the year-end of the is December 31.
Required: Prepare journal entries for the above transactions, including closing entries.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...