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On May 1, 2013, Sturgis Corporation declared a $100,000 cash dividend to be paid on May 31 to shareholders of record on May 15.
Required:
a. Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).
b. Prepare journal entries for all events associated with the dividend.
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