(l) Dividends: TouchBase did not change its financing during 2021. The existing $60,000 5-year loan (due in 2023) remained in place, and interest incurred was paid at the end of each quarter. The 15,000 shares of common stock (previously issued for $10/share with no par value) remained in place throughout the year. TouchBase declared, but did not yet pay, a year-end dividend of $4,500. This amount was not recorded since it hadnt been paid.

Journal Entry: l) Dividends

Dividends

Note: insert rows within the print area as needed

12/31/21

Example debit

99,999

Example credit

99,999

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