On January 1, Staley Corporation had 90,000 shares of no-par common stock issued. Of these, 5,000 shares are held as treasury stock. The stock has a stated value of $5 per share. During the year, the following transactions occurred.

Apr. 1 Issued 12,000 additional shares of common stock for $18 per share.

June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.

July 10 Paid the $1 cash dividend.

Dec. 1 Purchased 7,000 additional shares of treasury stock for $17 per share.

15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31.

Instructions

(a) Prepare the entries, if any, on each of the three dividend dates.

(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?