Using the following information record the required journal entries:
Common Stock outstanding ($10-par)………………….....$100,000
Net Income ……………………………………………...........$500,000
8% Preferred Stock ($300-par, 1,000 shs outstanding)...$300,000
a. The company declared a 10% stock dividend. The market price was $18 on the date of declaration.
b. Calculate the Earnings per share assuming the stock dividend in (a) was NOT made.
c. Assume instead of the facts in (a) above, that the company declared a 40% stock dividend