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Question - The board of directors of Enerson Manufacturing is in the process of declaring a dividend. The company is considering paying a cash dividend of $12 per share. Enerson Manufacturing is authorized to issue 800,000 shares of common stock. The company has issued 375,000 shares to date and has reacquired 50,000 shares. These 50,000 shares are held in treasury.
Required -
Assume that the board declares the dividend. Prepare the appropriate journal entries on the (1) date of declaration, (2) date of record, and (3) date of payment.
How many shares of common stock are eligible to receive a dividend?
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