Journal entries for dividend. Prepare journal entries for the following transactions of Watt Corporation. The firm has

Question:

Journal entries for dividend. 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 l0% 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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...