Company X Has 12 Million Shares of Common Stock Authorized $\prime$

Essay

Company X has 12 million shares of common stock authorized with a par value of $3 and a market price of
$116. 7 million shares are outstanding and 1 million shares are held in treasury stock. The company declares a
12 $\prime$ dividend. Prepare the journal entry and show the effect on assets, liabilities, and stockholders' equity at the time of declaration and at the time of payment.