In: Accounting
Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstanding $5 par common shares. During 2019, Fusion entered into the following transactions:
a. Declared a $0.30 per-share cash dividend on March 10
b. Paid the $0.30 per-share dividend on April 10
c. Repurchased 8,000 common shares at a cost of $18 each on May 2
d. Sold 1,500 unissued common shares for $23 per share on June 9
e. Declared a $0.45 per-share cash dividend on August 10
f. Paid the $0.45 per-share dividend on September 10
g. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share
h. Declared a $0.50 per-share cash dividend on November 10
i. Paid the 0.50 per-share dividend on December 10
Required:
1. Prepare journal entries for each of these transactions (Note: Round to the nearest dollar.)
2. Determine the total dollar amount of dividends (cash and stock) for the year.
3. Conceptual Connection: Determine the effect on total assets and total stockholders' equity of these dividend transactions.