Michael, Inc. is authorize to issue 50,000 shares of $50 par value, 8% cumulative, preferred stock and 750,000 shares of $5 par value common stock.

Prepare journal entries to record the following transactions that occured during the first year of operations.

a) Jan. 10 sold 96,000 shares of common stock for $10 a share

b) On Dec 1, declared $1.00 per share cash dividen on 96,000 shares common stock outstanding.

c) Dec 15, cash dividend date of record:

d) on Jan 1 the cash dividen was paid to shareholders.