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On December 30, 2020, Pizza Gnomes Inc. declared an $0.25 cash dividend per share to holders of record on February 15, 2021, payable on February 20, 2021. The par value is $0.10 per share and the market price is $18.00 per share on December 30, 2020. Pizza Gnomes has 5,000 common shares outstanding and 20,000 authorized shares.
Instructions
Problem 1: Record the necessary journal entries in the following table.
Computations:
Journal entries:
Date Account Title Debit Credit
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