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a . On June 1 , Sox Inc. declared a cash dividend of $ 2 . 5 0 per share on its 1 0 0

a. On June 1, Sox Inc. declared a cash dividend of $2.50 per share on its 100,000 outstanding shares
of common stock ( $0.10 par). The dividend is payable on June 15 to stockholders of record on June 1.
b. FX Inc. holds 2,000 shares of Den Co. common stock, purchased in May for $19 a share. On June 1,
FX Inc. declared a property dividend of 2,000 shares of Den Co. common stock when the shares were
selling at $22 per share. The carrying value of the shares on June 1 is $19 a share.
c. Lox Inc. declared a common stock cash dividend of $160,000 on August 15. Lox Inc. announced to
shareholders that $40,000 of the dividend amount was a return of capital.
d. Vox Inc. has outstanding 4,000 shares of $10 par, cumulative, 5% preferred stock and 20,000
shares of $1 par common stock. Dividends are in arrears for one year. On June 1, the board of
directors of Vox Inc. declared dividends of $50,000 to be paid to shareholders at the end of the fiscal
year.
Record the entry for declaration of dividends for each of the four separate scenarios.
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