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Survivor Company was formed on 1 January 1 by selling and issuing 20,000 shares of common stock at RM15 per share. On December 1, 2019, the company declared a cash dividend of RM10,000, which will be paid in cash on 15 January 12020.
Required:
Problem a). Prepare the journal entry to record the sale and issuance of the common stock on 1 January 2019 under each of the following independent assumptions:
i. The common stock has a par value of RM10 per share.ii. The common stock was no-par with a stated value of RM5 per share.iii. The common stock was no-par and had no stated value.
Problem b). Prepare the journal entry to record the dividend declaration on 1 December 2019.
Problem c). Prepare the journal entry to record payment of the dividend on 15 January 2020.
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