Mini-Exercise 8-1 Common stock-issuance and dividend transactions LO 1, 3

Altuve Co. was incorporated on January 1, 2013, at which time 375,000 shares of $10 par value common stock were authorized, and 160,000 of these shares were issued for $12 per share. Net income for the year ended December 31, 2013, was $1,828,800. Altuve Co.s board of directors declared dividends of $4 per share of common stock on December 31, 2013, payable on February 7, 2014.

Required:

Use the horizontal model to show the effects of the following:

a.	The issuance of common stock on January 1, 2013.

b.	The declaration of dividends on December 31, 2013.