1. 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