On May 1, Year 1, the Love Corporation declared a cash dividend of $72,400 to be paid on May 31 to shareholders of record on May 15.

Required
a. Record the events that occurred on May 1, May 15, and May 31 in a horizontal statement template. 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. (The amounts to be deducted must be indicated with the minus sign).

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

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

Shareholders of record on May 15 will receive a dividend payment to be paid on May 31.

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

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