Common Dividends}

Fusion Payroll Service Ltd. began 2018 with unlimited authorized and 375,000 issued and outstanding no par common shares. During 2018, Fusion entered into the following transactions:

a. Declared a \(\$ 0.30\) per share cash dividend on March 10 .

b. Paid the \(\$ 0.30\) per share dividend on April 10 .

c. Issued 1,500 common shares for \(\$ 23\) per share on June 9 .

d. Declared a \(\$ 0.45\) per share cash dividend on August 10 .

e. Paid the \(\$ 0.45\) per share dividend on September 10 .

f. Declared and paid a \(5 \%\) stock dividend on October 15 when the market price of the common shares was \(\$ 25\) per share.

g. Declared a \(\$ 0.50\) per share cash dividend on November 10 .

h. Paid the \(\$ 0.50\) per share dividend on December 10 .

\section*{Required:}

1. Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.)

2. Determine the total dollar amount of dividends (cash and shares) for the year.

3. CONCEPTUAL CONNECTION Determine the effect on total assets and total shareholders' equity of these dividend transactions.

\section*{OBJECTIVE 3 Problem