BE14-1 Greenwood Corporation has 80,000 shares o common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on Decem ber 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.

E14-2 Knudsen Corporation was organized on January 1, 2016. During its hrst vear, the corporation issued 2,000 shares of $50 par value preferred stock and 100.000 shares or $10 par value common stock. At December 31. the company declared the followins cash divi-dends: 2016, $5,000; 2017, $12,000; and 2018, $28,000.

(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative.

(b) Show the allocation of dividends to each class of stock, assuming the preterred stock dividend is 7% and cumulative

(c) Journalize the declaration of the cash dividend at December 31, 2018, under part (b).

E14-4 On October 31, the stockholders' equity section of Heins Company consists of common stock $500,000 and retained earnings $900,000. Heins is considering the following

two courses of action: (1) declaring a 5% stock dividend on the 50,000, $10 par value shares outstanding, or (2) effecting a 2-lor- stock split that will reduce par value to $3 per share. The current market price is $14 per share.