Purchase Solution

# Stock Dividends and splits

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1.Zebra Inc. has 2,000 shares of \$80 par value, 5% cumulative preferred stock outstanding.

If the company has no dividends in arrears, how much will Zebra pay out as dividends to its preferred stockholders this year?

Dividends = \$

2. Albatross Inc. has 10,000 shares of common stock outstanding. This year, the company's board of directors declared and paid a \$2 per share dividends on common stock. What is the journal entry to record the payment of these dividends? Journal Entry!

3. Husky Corporation currently has 30,000 shares of common stock, and no preferred stock, outstanding. The stock, which has a par value of \$1.00, was initially issued at \$17 per share. Currently, the stock is trading at \$24 per share.

Husky has declared a 10% stock dividend. What is the Journal entry to record this stock dividend?

4. Iguana Inc. has 100,000 shares of common stock outstanding. Additionally, the company has 1,000 shares of \$100 par value, 5% cumulative preferred stock outstanding. This year, the board of directors has allocated \$50,000 to pay dividends.

If the Iguana did not pay dividends last year, what will be the company's dividends per share of common stock this year?

Dividends per share of common stock= \$

##### Solution Summary

The rule and the process are shown for you and then the computations are completed.

##### Solution Preview

1.Zebra Inc. has 2,000 shares of \$80 par value, 5% cumulative preferred stock outstanding.

If the company has no dividends in arrears, how much will Zebra pay out as dividends to its preferred stockholders this year?

\$80 x .05 = \$4.00 per share x 2,000 shares = \$8,000

2. Albatross Inc. has 10,000 shares of common stock outstanding. This year, the company's board of directors declared and paid a \$2 per share dividends on common stock. What is the journal entry to record the payment of these dividends? Journal ...

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