a) On Feb. 1, the firm declares a cash dividend of $0.40 per share, to be distributed on May 1. Assume the firm has 200,000 shares outstanding in total. On May 1, the dividends are paid as announced.

Answer:

Feb. 1, Dividend declaration.
Assets	Liabilities & Equity
	.40 x 200,000 = 80,000 (-) RE 80,000 (+) Dividend Payable

May 1, Dividend payment.
Assets	Liabilities & Equity
-80,000 (-) Cash	80,000 (-) DP

On Nov. 1, the firm raises capital through equity issues. The firm has issued 50,000 shares of $1 par value common stock for $15.00 per share. (Lecture notes, pp.78)

Answer:

Nov. 1, Equity issue.
Assets	Liabilities & Equity