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Question - On April 15, 2021, Ayayai Ltd. declared a 50¢ per share cash dividend, payable on May 31 to shareholders of record on May 1. On the date of declaration, Ayayai Ltd. had 296,000 common shares outstanding. On May 15, 2021, the company issued an additional 81,000 common shares for $7 each. On May 31, the dividend was paid. On December 15, 2021, Ayayai Ltd. declared a 50¢ per share cash dividend, payable on January 15, 2022 to shareholders of record on January 2, 2022. Prepare the required journal entries to record these transactions.
Net Income is $75,000. Beginning retained earnings is $32,000 and ending retained earnings is $60,000. What was the amount of dividends paid
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