On January 1, Pharoah Company had 64,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1   Issued 8,500 additional shares of common stock for $10 per share. June 15   Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10   Paid the $1.50 cash dividend. Dec. 1   Issued 4,300 additional shares of common stock for $12 per share. Dec. 15   Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31. Prepare the entries, if any, on each of the three dates that involved dividends.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.