Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of 2019, Berkwild

Question:

Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of 2019, Berkwild had 248,000 issued and outstanding shares. On July 2, 2019, Berkwild repurchased 4,610 shares of its at $28 per share. On March 1 and September 1, Berkwild declared a cash of $1.10 per share. The dividends were paid on April 1 and October 1.
Required:
1. Prepare the journal entries to record the declaration of the two cash dividends.
2. Prepare the journal entries to record the payment of the two dividends.
3. Explain why the amounts of the two dividends are different?
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...