Question

Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of 2011, Berkwild had 248,000 issued and outstanding shares. On July 2, 2011, Berkwild repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1.

Required:
1. Prepare the journal entries to record the declaration of the two cash dividends.
2. Prepare the journal entries to record the payment of the two dividends.
3. Explain why the amounts of the two dividends are different.


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  • CreatedSeptember 22, 2015
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