Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The

charter of the corporation authorized 500,000 shares of $5 par common stock, and 100,000 shares of

$30 par, 3%, preferred stock. As of January 1, 2018, there were 25,000 shares of common stock issued

and outstanding and 4,000 shares of preferred stock issued and outstanding.

Selected transactions completed by Sharpe Incorporated during the fiscal year-ending December 31,

2018, are as follows:

Jan 1

Issued 13,000 shares of $5 par common stock at $19, receiving cash.

Jan 1 Issued 6,700 shares of $30 par, 3%, preferred stock at $69 for cash.

Feb 1

Purchased equipment for $220,000, paying $20,000 cash and financing the remainder with a

180-day, 5% note payable.

Mar 15 Purchased land for $352,000 by issuing 18,000 shares of common stock.

Mar 31 Purchased a two-year insurance policy for $39,000.

May 1 Purchased 1,600 shares of the companys own common stock at $23 per share.

May 31

Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. The amount of

cash received was $1,087,936.

July 30 Paid the amount due on the note payable signed on February 1.

Aug 1 Sold 500 shares of treasury common stock purchased on May 1 for $26 per share.

Sept 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to

stockholders of record on September 20. The market price per share on September 15 is $26

per share.

Sept 30 Distributed the stock dividend declared September 15.

Oct 1 Borrowed $36,000 from Second Bank by issuing an 7% note. The note is to be repaid in

quarterly payments of principal plus interest totaling $2,130 per quarter.

Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $20 per share.

Nov 30 Paid the semiannual interest and amortized the premium on the bonds issued on May 31.

Dec 1 Declared a cash dividend at the stated amount to preferred stockholders and .50 per share to

common stockholders payable on December 30 to stockholders of record on December 16.

(Hint: dont forget the shares distributed from the stock dividend)

Dec 30 Paid the cash dividends declared on December 1.

Dec 31 Paid the first quarterly installment of the note issued on October 1. Hint: remember that

interest expense on an installment note is calculated on the outstanding loan balance, and the

balance of the payment is principal.

Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the remainder is on

account.

Dec 31 Record expenses for the year, paid in cash (one compound entry):

Rent

$170,000

Utilities

13,200

Salaries

760,000

Advertising

140,000

Medical insurance 32,000

Commissions 63,000

Legal and accounting 18,000

Miscellaneous 8,400

I need help how calculate Dividends , in the Statement Retained earning Dividends are 36,312.00 how get that amount?