On May 1, Year 1, Love Corporation declared a $72,400 cash dividend to be paid on May 31 to shareholders of record on May 15. Required a. Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event. (Amounts to be deducted should be indicated with minus sign.)

b. Prepare journal entries for all events associated with the dividend.

On May 1, Love Corporation declared a $72,400 cash dividend to be paid on May 31.

The shareholders on record on May 15 will receive a dividend payment to be paid May 31.

On May 31, the dividends are paid to the shareholders of record on May 15.

On December 31, the closing entry for dividends is recorded.