Lofen Enterprises had issued shares of common stock totaling 3,180,000 at the beginning of 2027. In order to increase their earnings per share, the company repurchased 530,000 shares of their stock on July 26, 2027. On November 30, 2027, Lofens board of directors declared dividends of $3.26 per share payable on January 5, 2028. The companys accounting cycle ends on December 31^st each year.

Record the journal entry for the liability incurred (created).