Aquamanu Developments is authorized to issue 500,000 shares. To date, the company has 174,400 shares issued and 138,600 outstanding. Aquamanu is considering declaring a dividend to its common shareholders. Management is recommending the board of directors to consider the following options at the next meeting scheduled for March 1:

1. The boards of directors should approve a motion directing the company to pay a dividend of $0.40 per share on May 1 to shareholders of record on April 15 or

2. The board should approve a motion directing the company to declare a 10% stock dividend. Aquamanu would distribute one common share for every 10 common shares currently held. The companys common shares are currently selling for $52 per share.

A) Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1

B)Prepare the entry to record the stock dividend, assuming that the dividend is declared on March 1 and is distributed on May 1.

I always thumbs up good answers. Thanks!