Reporting and Interpreting Owners Equity.

1. Survivor Company was formed on January 1, 2015 by selling and issuing 20,000 shares of common stock at $15 per share. The common stock has a par value of $5 per share. On December 1, 2016, the company declared a cash dividend of $10,000 which will be paid in cash on January 15, 2017. On January 25, 2017, the company purchased 600 shares of its own stock for $20 per share. The annual accounting period ends December 31.

A. Give the journal entry to record the sale and issuance of the common stock on January 1, 2015.

B. Give the journal entry to record the dividend declaration on December 1, 2016.

C. Show the journal entry to record payment of the dividend on January 15, 2017.

D. Give the journal entry to record the purchase of the treasury stock on January 25, 2017.

2. Jacobs Company has 288,000 shares of common stock authorized, 260,000 shares issued, and 60,000 shares of treasury stock. The companys board of directors declares a dividend of 65 cents per share. What is the total amount of the dividend that will be paid? Give the journal entry to record the dividend declaration.