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Cash Dividends on Common Stock

Berkwild Company is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Berkwild had 309,000 issued and outstanding shares. On July 2, Berkwild repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Berkwild declared a cash dividend of $1.10 per share. The dividends were paid on April 1 and October 1.

Required:

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1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank.

2. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank.