Accounting- Stockholder’s equity

Stockholder’s Equity and Earnings Per Share:

Problem 2:  During 2012, Mason Company made the following common stock transactions (Class B Stock).  For each of the following give the entry(s) that Mason Company would have made.  The common stock has a par value of $10.  (Each of the following scenarios are independent)

1. On Jan. 5^th, Mason Company issued a property dividend.  Investments (Stock in the ABC Company) comprising of 1000 shares was issued.  The stock has a fair market value of $25 per share.  The stock cost Mason Company $20 per share.  They issued the ABC Company stock one month later.

    

2. On Feb. 14, Mason Company declared a 10% stock dividend (assume 92,623 shares of $10 par outstanding stock).  On that date market value of the stock was $14.  One month later they issued the common stock dividend.

    

3. On August 12^th, Mason Company declared a cash dividend of $0.50 per share of common stock.

    

4. On October 14^th, Mason Company issued a 2 for 1 stock split.

    

5. On May 15^th, Mason Company issued 5,000 shares of cumulative 8% preferred stock with a par value of $100 for $112 per share.

    

6. Assume the following:  At the end of the year there were 92,623 shares of common stock outstanding and 5,000 share of non-cummulative/ non-participating preferred stock outstanding.  Mason Company wants to issue cash dividends totaling $77,050.  Calculate how much goes to preferred stock holders and common stock holders.