Common Stock 10,000,000 shares authorized, $1,000,000 issued $3,000,000

Capital Surplus $40,000,000

Treasury Stock on Common 100,000 shares $6,000,000

Cumulative Preferred Stock 500,000 authorized

[2%] $100 par $8,000,000

Treasury Stock on Preferred Stock 10000 shares $6,000,000

Retained Earnings $60,000,000

6. If Bruins Inc. were to provide for a 10% common stock dividend, then how many new shares are to be mailed to existing shareholders?

7. Assume in question [6] the market price of the common stock was $15 at the time of the stock dividend announcement. What is the journal entry to record the stock dividend?

8. Using the equity portion of the Bruins Inc. balance sheet above, determine the amount of the total equity in Bruins Inc. Assume this question ignores the results of questions [1-7] above.

9. What is the impact of the common and preferred cash dividend [$5,000,000 as per question 1 above] on the current balance sheet of Bruins Inc.?

10. What is the impact of the 20% common stock dividend on the balance sheet? Assume this question ignores questions [1-9] above.