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Arrow Streaming Corporation has 10,000 common shares outstanding at January 1, 2016 with a stated value of $100,000. On April 1, Arrow Streaming declared a 10 per cent share dividend, payable on April 15 to shareholders of record on April 10. The market value of Arrow’s shares on April 1 was $15. On June 1, the company declared a $2 cash dividend per share to common shareholders of record on June 10, and paid the dividend on June 30. Assume the year-end of the corporation is December 31.
Required: Prepare journal entries for the above transactions, including closing entries.
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