This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 10-50 of...

This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 10-50 of Chapter 10. On June 20, Sherman Lawn Service declared a dividend of $1,000 to all common shareholders of record on June 25 to be paid on July 1.

Requirements

1. Journalize the entries related to the dividends.

2. On June 30, on what financial statement would the dividend balance appear? Why?