Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding $8 par common

Question:

Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding $8 par common shares. During 2019, Thompson entered into the following transactions:

a. Declared a $0.20 per-share cash dividend on March 24.

b. Paid the $0.20 per-share dividend on April 6.

c. Repurchased 13,000 common shares for the treasury at a cost of $12 each on May 9.

d. Sold 2,500 unissued common shares for $15 per share on June 19.

e. Declared a $0.40 per-share cash dividend on August 1.

f. Paid the $0.40 per-share dividend on September 14.

g. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share.

h. Declared a $0.45 per-share cash dividend on November 20.

i. Paid the $0.45 per-share dividend on December 20.

Required:

1. Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.)

2. What is the total dollar amount of dividends (cash and stock) for the year?

3. Determine the effect on total assets and total stockholders' equity of these dividend transactions.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...