Austin Corporation was authorized to issue 100,000 shares of $10 par common stock. During 2014 Austin issued 30,000 shares at a market price of $15 per share. On December 1, 2014, 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.

Question

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The Answer of Austin Corporation was authorized to issue 100,000 shares of $10 par common stock. During 2014 Austin issued 30,000 shares at a market price of $15 per share. On December 1, 2014, 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.

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