Sammy Corp was formed on January 1, 2016, by selling and issuing 20,000 shares of common stock at $15 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.

Required:

A. Prepare the journal entry to record the sale and issuance of the common stock on January 1, 2016. The common stock has a par value of $10 per share.

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

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