Fusion Payroll Service began 2011 with 1,200,000 authorized and 375,000 issued and outstanding $5 par common shares. During 2011, Fusion entered into the following transactions:
a. Declared a $0.30 per share cash dividend on March 10.
b. Paid the $0.30 per share dividend on April 10.
c. Repurchased 8,000 common shares at a cost of $18 each on May 2.
d. Sold 1,500 unissued common shares for $23 per share on June 9.
e. Declared a $0.45 per share cash dividend on August 10.
f. Paid the $0.45 per share dividend on September 10.
g. Declared and paid a 5 percent stock dividend on October 15 when the market price of the common stock was $25 per share.
h. Declared a $0.50 per share cash dividend on November 10.
i. Paid the $0.50 per share dividend on December 10.
1. Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.)
2. Determine the total dollar amount of dividends (cash and stock) for the year.
3. Determine the effect on total assets and total stockholders’ equity of these dividend transactions.