ACCT241

Stamboul is considering the impact of various types of dividends on this balance sheet. Each dividend would be declared 3. Property dividend consisting of the $9,000 (book value) investment in Ostend bonds being held to maturity. This investment has a curre market value of $13,000. (For Requirement 2, assume any gain or loss is to be reflected in retained earnings. Disregard income taxes.) 4. Scrip dividend of $0.80 per share on the 15,000 shares outstanding. The scrip earns interest at a 12% annual rate and is to be declared January 30 and paid on December 30, 2019. (For Requirement 2, assume any interest expense is to be reflected in retained earnings. Disregard income taxes.) 5. Cash dividend consisting of a $0.70 per share normal dividend and a $0.30 per share liquidating dividend. Required: For each preceding independent dividend: 1. Prepare the appropriate journal entries for the declaration and payment or distribution of the dividend. 2. Prepare a condensed balance sheet after each dividend has been paid or distributed. Stamboul Company lists the following condensed balance sheet as of the beginning of 2019: Stamboul is considering the impact of various types of dividends on this balance sheet. Each dividend would be declared and paid in 2019 . These include: 1. Cash dividend of $1.00 per share on the 15,000 shares outstanding 2. Stock dividend of 5% on the 15,000 shares outstanding when the market price is $17 per share. 3. Property dividend consisting of the $9,000 (book value) investment in Ostend bends being held to maturity. This investment has a current market value of $13,000. (For Requiternent 2 , assume any gain or loss is to be reflected in retained earnings. Disregard income taxes) 4. Scrip dividend of $0.80 per share on the 15,000 shares outstanding. The scrip earns interest at a 12% annual rate and is to be declared on January 30 and paid on December 30, 2019. (For Fequirement 2, assume any inferest expense is to be fetlected in retained earnings. Disregard income taxes.) 5. Cash dividend consisting of a $0.70 per share normal dividend and a $0.30 per share liquidating dividend: on the 15,000 shares outstanding when the market price is $17 per share 1.4. Prepare the appropriate journal entries for the declaration on January 30 and payment or distrbution of fhe dividend on December 30 , assuming a scrp dividend of $0.80 per share on the 15,000 shares outstanding. The scrip eams interest af a 12% annual rate. 1.5. Prepare the appropriate journal entries for the dectaration on December 1 and payment or distribution of the dividend on December 15 , assuming a cash dividend consisting of a \$0.70 peir share nomal dividend and a $0.30 por share Niquidating dividend. General Joumal instructions \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{2}{|c|}{} & & & PAGE 1 \\ \hline 1 & GENERAL JOURNAL & \\ \hline \end{tabular} 13. Prepare the following appropriate jouma entries for the declaration on December 1 and payment or distribudion of the dividend on Ducember 15 , assuming a properry ovidend GENERAL JOURNAL PACE : DATE ACCOUAT TITLE POST. REF. DEBT CREDIT 1.1. Prepare the following appropilate journal entres for the dectaration on December 1 and payment or distraution of the dividend on December 15 , assuming a cash dividend of $1. of per share on the 15,000 shares outstanding. Gerieral Joumal Instructions