COMMON DIVIDENDS Papke Payroll Service began 2009 with 1,000,000 authorized and 225,000 issued and outstanding $10 par common shares. During 2009, Papke entered into the following transactions:

a. Declared a $0.40 per share cash dividend on March 10.

b. Paid the $0.40 per share dividend on April 10.

c. Purchased 8,000 common shares for the treasury at a cost of $24 each on May 2.

d. Sold 3,000 unissued common shares for $26 per share on June 9.

e. Declared a $0.55 per share cash dividend on August 10.

f. Paid the $0.55 per share dividend on September 10.

g. Declared and paid a 10 percent stock dividend on October 15 when the market price of the common stock was $28 per share.

h. Declared a $0.60 per share cash dividend on November 10.

i. Paid the $0.60 per share dividend on December 10.

Required:

. Prepare journal entries for each of these transactions.

. Determine the total amount of dividends (cash and stock) for the year.

. Determine the effect on total assets and total stockholders’ equity of these dividend transactions.