Question:

Part A Lee's Teas Inc.'s charter authorizes the company to issue up to 1,000,000 common shares. As of January 1, 2020, Lee's Teas Inc.'s shareholders' equity section of the balance sheet reported the following: . Common shares (outstanding: 300,000 shares ) $5,400,000 During 2020, the following transactions related to shareholders' equity occurred, in the order given: . Mar 3: Declared a cash dividend of $1.25 per share to all shareholders of record on March 15. The dividend is payable on March 31. Mar 31: Paid the dividend from March 3. May 24: Reacquired and canceled 20,000 common shares at $18 cash per share from shareholders. . Oct 11: Declared and paid a 5% stock dividend when the market price per share was $20 per share. Required: Provide the journal entries to record the above transactions, using the table below to record your answers. NOTE: USE FULL, PROPER ACCOUNT NAMES AS USED IN CLASS AND IN THE TEXTBOOK - NO ABBREVIATIONS. ENTER DOLLAR AMOUNTS IN WHOLE DOLLARS ONLY: NO COMMAS, NO DOLLAR SIGN, NO DECIMALS. Date Account Name(s) Debit Credit Mar 3 Cash 6750 Common shares 6750 Mar 31 Dividend Payable Cash