Elm Corporation secured authorization from the state for 200,000 shares of $10 par value common stock. It

Question:

Elm secured authorization from the state for 200,000 shares of $10 common stock. It has 80,000 shares issued and 70,000 shares outstanding. On June 5, the board of directors declared a $0.25 per share cash to be paid on June 25 to stockholders of record on June 15. Prepare journal entries to record these events.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...