Company X Has 12 Million Shares of Common Stock Authorized $\prime$

question 128

Essay

Company X has 12 million shares of common stock authorized with a par value of $3 and a market price of
$116. 7 million shares are outstanding and 1 million shares are held in treasury stock. The company declares a
12 $\prime$ dividend. Prepare the journal entry and show the effect on assets, liabilities, and stockholders' equity at the time of declaration and at the time of payment.

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Definitions:

Alertness

The state of being quick to notice and respond to potential dangers or opportunities.

School Start Time

The designated time at which school classes begin for the day, which can significantly impact students' sleep, health, and learning.

Risky Activity

Engagements or behaviors that involve a significant likelihood of suffering harm or loss.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.