Austin Corporation Was Authorized to Issue 100,000 Shares of $10

question 17

Essay

Austin Corporation was authorized to issue 100,000 shares of $10 par common stock.During 2012 Austin issued 30,000 shares at a market price of $15 per share.On December 1,2012,Austin declared a cash dividend of $2 per share payable on December 30 to stockholders of record as of December 15.
Required:
a)Indicate effect on financial statements on the date of declaration,date of record,and date of payment of the cash dividends.Use the model below. b)What kind of transaction is the declaration of a cash dividend?
c)What kind of transaction is the payment of a cash dividend?

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Definitions:

Electrophoresis

A laboratory method used to separate mixtures of DNA, RNA, or proteins according to their size and electrical charge.

DNA Sequencing

DNA sequencing is the process of determining the precise order of nucleotides within a DNA molecule.

Research Application

The process of applying scientific methods and principles for the purpose of discovering new knowledge or applications.

Zebrafish

A small freshwater fish used as a model organism in scientific research due to its genetic similarity to humans and its transparent embryos which allow easy observation of developmental processes.