Tone Corporation has authorized 200,000 shares of $1 par value common stock, of which 160,000 are issued

Question:

Tone Corporation has authorized 200,000 shares of $1 par value common stock, of which 160,000 are issued and 140,000 are outstanding. On May 15, the board of directors declared a cash dividend of $0.20 per share, payable on June 15 to Stockholders of record on June 1. Prepare the entries in T accounts, as necessary, for each of the three dates.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...