On January 1 Tarow Corporation had 75,000 shares of no-par common stock issued and outstanding. The stock has a stated value of \(\$ 5\) per share. During the year, the following transactions occurred:

Apr. 1 Issued 5,000 additional shares of common stock.

June 15 Declared a cash dividend of \(\$ 1\) per share to stockholders of record on June 30 . July 10 Paid the \(\$ 1\) cash dividend.

Dec. 1 Issued 2,000 additional shares of common stock.

15 Declared a cash dividend on outstanding shares of \(\$ 1.20\) per share to stockholders of record on December 31.

\section*{Instructions}

(a) Prepare the entries, if any, on each of the three dividend dates.

(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?