OnJanuary 1, 2019,Accounting For You Professional Corporationhad $ 2,000,000 of common shares that were issued at $ 10per shareand retained earnings of $ 1,000,000. The corporationissued100,000 common shares at $ 13 per share on July 1, 2019.On August 1, 2019, the companydeclareda $ 0.50 cash dividend to bepaidon August 31, 2019to shareholders of record on August 15, 2019. OnDecember 15,2019the board of directorsdeclared a 10%commonstock dividendto shareholders of record on December 31, 2019,distributableonJanuary 15, 2020. Themarket valueof Accounting For You Professional Corporationcommonshares was$ 15 per shareon December 15 and$ 14 per shareon December 31, 2019.Profit for 2019was $ 500,000.

Instructions:

a)Preparethejournalentries related to the above transactionsup toDecember 31, 2019.

b)Prepare the shareholders' equity section of the balance sheet for Accounting For You Professional Corporation at December 31, 2019.

c)Calculate the dividend payout ratio for 2019.