Cash Dividends on Common Shares Bergman Company Inc. is authorized to issue an unlimited number of common shares. At the beginning of 2018. Bergman had 248.000 issued and outstanding shares. On July 2, 2018, Bergman repurchased and cancelled 4.610 common shares at \(\$ 28\) per share. On March 1 and September 1. Bergman declared a cash dividend of \(\$ 1.10\) per share. The dividends were paid on April 1 and October 1

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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. CONCEPTUAL CONNECTION Explain why the amounts of the two dividends are different.

Exercise