Recording Dividend Declaration Following are four separate dividend scenarios. a. On April 1, 2020, Meriter Corporation declared a cash dividend of $5.00 per share on its 44,800 outstanding shares of common stock ($1 par). The dividend is payable on April 21, 2020, to stockholders of record on April 14, 2020. b. Axe Co. has issued and outstanding 1,400 shares of $100 par, cumulative, 5% preferred stock and 28,000 shares of $5 par common stock. Dividends are in arrears for the past year (not including the current year). On December 15, 2020, the board of directors of Axe Co. declared dividends of $35,000 to be paid to shareholders at the end of its fiscal year. c. Siri Corp. holds 1,400 shares of Mobile Co. common stock, purchased at the beginning of the year for $30 a share (carrying value on February 1, 2020). On February 1, 2020, Siri Corp. declared a property dividend of 630 shares of Mobile Co. common stock when the shares were selling at $28 per share. d. Treck Corporation declared a common stock dividend of $63,000 on April 1, 2020. Treck Corporation announced to shareholders that 70% of the dividend amount was a return of capital. Required Record the entry for the declaration of dividends for each of the four separate scenarios. Account Name Date a April 1, 2020 Retained Earnings Dividends Payable-Common Stock b. Dec. 15. 2020 Retained Earnings Dividends Payable-Preferred Stock Dividends Payable Common Stock C Feb. 1, 2020 Unrealized Gain or Loss-Income Investment in Stock Feb. 1, 2020 To record fair value adjustment. Retained Earnings Property Dividends Payable To record dividend declaration d April 1, 2020 Retained Earnings Paid-in Capital in Excess of Par-Common Stock Dividends Payable Dr. 224,000 Cr. 0 224,000 = 35,000 00 14,000 04 21,000 2.800 x 2,800 x 17,640 00 17,640 18.900 0 44.100 06 63,000