Common Dividends}

Thompson Payroll Service Ltd. began in 2018 with unlimited authorized and 820,000 issued and outstanding no par common shares. During 2018, Thompson entered into the following transactions:

a. Declared a \(\$ 0.20\) per share cash dividend on March 24 .

b. Paid the \(\$ 0.20\) per share dividend on April 6 .

c. Issued 2,500 common shares for \(\$ 15\) per share on June 19.

d. Declared a \(\$ 0.40\) per share cash dividend on August 1 .

e. Paid the \(\$ 0.40\) per share dividend on September 14 .

f. Declared and paid a \(10 \%\) stock dividend on October 25 when the market price of the common shares was \(\$ 15\) per share.
g. Declared a \(\$ 0.45\) per share cash dividend on November 20 .
h. Paid the \(\$ 0.45\) per share dividend on December 20 .
\section*{Required:}
1. Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.)
2. What is 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*{Problem