company D announces that it has 10,000,000 shares authorized and issued. In its initial public offering 7,000,000 of these shares were offered to the public. this leaves 3,000,000 yet to be offered and so they are not "outstanding." three years after the public offering Company D repurchased 2,200,000 shares. The Company continues to hold them for possible reissuance. they have not been retired. there has been no other activity in common stock other than its normal trading in the market. for purposes of measuring dividends how many shares should be counted as "outstanding?"

a.) the company then announces a $6 per share dividend on November 1 of its third fiscal year. on this date, what amount should be entered in the income statement as an expense?

b.) using the info in question a, what amount should be used to Debit Retained Earnings for the Dividend Declared?

c.) continuing with the info from parts a and b, on the dividend payment date announced by the Board, which happens to be December 20th of this year, what should be the Credit to Cash when dividends are paid to shareholders "of record?"