a. Aquadox Corp has 8,000 shares of common stock outstanding. It declares a $3 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.Use the Accounting Equation format to answer this question.

b.Sanforce and Kid Co. currently has 600,000 shares of common stock outstanding. Sanforce is considering the following two alternatives to finance the construction of a new $1.00 million plant. Financing will occur on January 1, 2020:

- Issuing 100,000 shares of common stock at the current market price of $10 per share

- Issuing $1 million, 5% bonds at face value

Use the spreadsheet to determine the following values as of December 31, 2020 UNDER EACH SCENARIO (be sure to use neat, readable formatting andformulas) - Income before interest and taxes is estimated to be $1.5 million in 2020:

i.Income before taxes

ii. Income tax expense (assume a flat 30% tax rate on all income before taxes)

iii. Net Income

iv. Number of shares

v. Earnings per Share

c. Company X has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $4 par value common stock has increased from $14 per share to $53. During this period, paid-in capital remained the same at $6,000,000. Retained earnings increased from $4,500,000 to $30,000,000. The CEO is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. She has asked you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) number of shares outstanding.

Complete a spreadsheet with:

4 columns (Description, Original Balance, After Dividend, and After Split) and

5 rows (Title row containing the title of each column as described in the parenthetical above, Paid-in Capital, Retained Earnings, Total Stockholders' Equity, and Shares Outstanding)

All values as described by the rows and columns.