COMMON DIVIDENDS. Papke Payroll Service began 19x2 with 1,000,000 authorized and 225,000 issued and outstanding $10 par common shares. During 19x2 Papke entered into the following transactions:

a) Declared a $.40-per-share cash dividend on March 10.

b) Paid the $.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 $.55-per-share cash dividend on August 10.

f) Paid the $.55-per-share dividend on September 10.

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

h) Declared a $.60-per-share cash dividend on November 10.

i) Paid the $.60-per-share dividend on December 10.

REQUIRED:

1. Prepare journal entries for each of these transactions.

2. What is the total amount of dividends (cash and stock) for the year?

3. What was the effect on total assets and total stockholders’ equity of these dividend transactions?