Lindy Corporation Has 1,000,000 Authorized Shares of $20 Par Value

question 227

Essay

Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2014, there were 600,000 shares issued and outstanding. On June 30, 2014, the board of directors declared a $0.50 per share cash dividend to be paid on August 1, 2014.
Instructions
Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

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Definitions:

Interrogate

To ask questions closely, aggressively, or formally, often for the purpose of obtaining truth or information.

Remuneration

Payment or compensation received for services rendered or work performed.

Terminate

To bring something to an end or conclude its operation.

Paraphrasing

The act of rewording a text or passage to express the same meaning in a different way, often to clarify or simplify.