A Company was formed on January 1, 2009 by selling and issuing 25,000 shares of $12 par value common stock at $15 per share.

A Company was formed on January 1, 2009 by selling and issuing 25,000 shares of $12 par value common stock at $15 per share. On December 1, 2010, the company declared a cash dividend of $2 per share which will be paid in cash on January 15, 2011. The annual accounting period ends December 31. Prepare the appropriate journal entries on each date.