E15.12 (LO3) (Cash Dividend and Liquidating Dividend) Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents per share cash dividend to shareholders of record as of June 14, payable June 30. Instructions a. Prepare the journal entry for each of the dates above, assuming the dividend represents a distribution of earnings. b. How would the entry differ if the dividend were a liquidating dividend? E15.13 (LO3) (Share Split and Share Dividend) The ordinary shares of Otuk Holding are currently selling at 110 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is 10; book value is 70 per share. Five million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. a. The board votes a 2-for-1 share split. b. The board votes a 100% share dividend. c. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding. E15.21 (LO5) (Preference Dividends) The outstanding share capital of Pennington Corporation consists of 2,000 shares of $100 par value, 6% preference, and 5,000 shares of $50 par value ordinary. Instructions Assuming that the company has retained earnings of $70,000, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions. a. The preference shares are non-cumulative and non-participating. b. The preference shares are cumulative and non-participating. c. The preference shares are cumulative and participating. (Round dividend rate percentages to four decimal places.)