1)Madrid Corporation has 17,000 shares of $70 par common stock outstanding. On June 8, Madrid Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8.

Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank.

Jun. 8
Jul. 13
Aug. 12

2)Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 1,000 shares have been reacquired.

Common Stock, $50 par	$3,000,000
Paid-In Capital from Sale of Treasury Stock	120,000
Paid-In Capital in Excess of ParCommon Stock	1,200,000
Retained Earnings	1,740,000
Treasury Stock	82,000

Stockholders' Equity
Paid-In Capital:
	$
		$
Total Paid-in Capital		$
Total		$
Total Stockholders' Equity		$

3)Financial statement data for the years ended December 31 for Dovetail Corporation follow:

	20Y3		20Y2
Net income	$1,095,000		$898,250
Preferred dividends	$167,000		$167,000
Average number of common shares outstanding	80,000	shares	65,000	shares

a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.

20Y3	$ per share
20Y2	$ per share

b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or an unfavorable trend?

4)Honey Mill Cameras Inc. reported the following results for the year ending October 31, 20Y9:

Retained earnings, November 1, 20Y8	$782,000
Net income	289,300
Cash dividends declared	27,000
Stock dividends declared	69,000

Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9.

Honey Mill Cameras Inc.
Retained Earnings Statement
For the Year Ended October 31, 20Y9
		$
	$
		$