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During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2011. Share issue costs were $1,500. One year from the issue date (July 1, 2012), the corporation retired 10% of the shares for $39,500.
Required:
1. Prepare the journal entry to record the issuance of the shares.
2. Prepare the journal entry to record the declaration of a $2 per share dividend on December 1, 2011.
3. Prepare the journal entry to record the payment of the dividend on December 31, 2011.
4. Prepare the journal entry to record the retirement of the shares.
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