Altuve Co. was incorporated on January 1, 2019, at which time 325,000 shares of $10 par value common stock were authorized, and 135,000 of these shares were issued for $20 per share. Net income for the year ended December 31, 2019, was $1,543,050. Altuve Co.'s board of directors declared dividends of $3 per share of common stock on December 31, 2019, payable on February 7, 2020. Required: a. Use the horizontal model to show the effects of the issuance of common stock on January 1, 2019. Indicate the financial statement effect. b. Use the horizontal model to show the effects of the declaration of dividends on December 31, 2019. Indicate the financial statement effect. c. Use the horizontal model to show the effects of the payment of dividends on February 7, 2020. Indicate the financial statement effect. d. Record the journal entry for the following transactions: Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use the horizontal model to show the effects of the issuance of common stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus Balance Sheet Liabilities Assets Net Income Cash 2,700,000 Stockholders' Equity Common stock + Additional paid-in capital = 1,350,000 1,350,000 the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Income Statement Iders' Equity Net Income II Revenues Expenses + II 1,350,000 1,350,000 pital II Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use the horizontal model to show the effects of the declaration of dividends on December 31, 2019. Indicate the financial statement effect. (Enter decreases with a minus Balance Sheet Assets Liabilities + Stockholders' Equity Net Income II + dicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Income Statement kholders' Equity Net Income Revenues Expenses Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Use the horizontal model to show the effects of the payment of dividends on February 7, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign Balance Sheet Incon Assets Liabilities + Stockholders' Equity Net Income Revenues = + 7, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Income Statement Stockholders' Equity Net Income Revenues Expenses = Record the journal entry for the following transactions: (If no entry is required for a transaction/event, select "No journal entry in the first account field.) View transaction list Journal entry worksheet The issuance of common stock on January 1, 2019. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2019 Record entry Clear entry View general journal Record the journal entry for the following transactions: (If no entry is required for a transaction/event, se in the first account field.) View transaction list Journal entry worksheet The declaration of dividends on December 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Record entry Clear entry View general journal in the first account field.) View transaction list Journal entry worksheet
