a. of $3.00 per share and a five percent stock dividend. The market price of the stock at year-cid, he compy deciales the declaration date is $40 per share. Three weeks later, the company pays the dividends. Prepare the journal entry for the declaration of the cash dividend. b. Prepare the journal entry for the declaration of the stock dividend. c. Prepare the journal entry for the payment of the cash dividend. d. Prepare the journal entry for the payment of the stock dividend. LO5, 7 E11-15A. Large Stock Dividend and Forward Stock Split High Corporation has 60,000 shares of $20 par value common stock outstanding and retained earnings of $800,000. The company declares a 100 percent stock dividend. The market price at the declaration date is $20 per share. a. Prepare the journal entries for (1) the declaration of the dividend and (2) the issuance of the dividend. b. Assume that the company splits its stock 2-for-1 and reduces the par value from $20 to $10 rather than declaring a 100 percent stock dividend. How does the accounting for the forward stock split differ from the accounting for the 100 percent stock dividend? EXERCISES-SET B LO7 E11-13. Dividend Distribution Bowen Corporation has the following shares outstanding: 15,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $5 par value common stock. During its first three years in business, the firm declared no dividends in the first year, $140,000 of divi- dends in the second year, and $60,000 of dividends in the third year. If the preferred stock is cumulative, determine the total amount of dividends paid to each class of stock in each of the three years. b. If the preferred stock is noncumulative, determine the total amount of dividends paid to each class of stock in each of the three years. E11-2B. Share Issuances for Cash Chase, Inc., issued 10,000 shares of S20 par value preferred stock at $50 per share and 8,000 shares of no-par value common stock at $20 per share. The common stock has no stated value. All issuances were for cash. LO4