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Preparation of journal entries to record issue of shares and dividend.
On January 1, 2008, Dolan Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:
Mar.
1
Issued 20,000 shares of common stock for $400,000.
June.
Declared a cash dividend of $2.00 per share to stockholders of record on June 15.
June
30
Paid the $2.00 cash dividend.
Dec.
Purchased 4,000 shares of common stock for the treasury for $22 per share.
15
Declared a cash dividend on outstanding shares of $2.25 per share to stockholders of record on December 31.
Instructions Prepare journal entries to record the above transactions.
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