Altuve Company was incorporated on January 1, 2022, at which time 150,000 shares of $10 par value common stock were authorized, and 65,000 of these shares were issued for $13 per share. Net income for the year ended December 31, 2022, was $742,950. Altuve Companys board of directors declared dividends of $4 per share of common stock on December 31, 2022, payable on January 24, 2023.

Required:

Use the horizontal model to show the effects of the issuance of common stock on January 1, 2022. Indicate the financial statement effect.

Use the horizontal model to show the effects of the declaration of dividends on December 31, 2022. Indicate the financial statement effect.

Use the horizontal model to show the effects of the payment of dividends on January 24, 2023. Indicate the financial statement effect.

Record the journal entry for these transactions.