1. Question2

Peterson Corporation was organized in Year 1 to operate a tax preparation business. The company authorized the following capital stock: common stock, par value $4 per share, 160,000 shares. During the first year, the following selected transactions were completed:

• (a) Sold and issued 100,000 shares of common stock for cash at $100 per share.

Required: Prepare J/E for the transaction:

2. Question3

A recent annual report for Lawson, Inc. disclosed that the company declared and paid dividends on common stock in the amount of $4 per share. During the year, Lawson had 2,000,000,000 authorized shares of common stock and 775,028,600 issued shares. 691,688,600 shares outstanding.

Required: Assume Lawson declared the entire dividend ($4 per share) on July 15 and subsequently paid the dividend on July 31. Calculate shares outstanding and provide the journal entries to record the declaration and payment of dividends.

1. Computation dividends:

b) Declaration of dividends

2. Payment of dividends