II. Journal entries: 1. The retained earnings accounts of the Cozy Corporation are as follows: During the month of August, the following transactions took place: (a) Declared cash dividend of P 60,000. (b) Decreased the appropriation for contingencies to P100,000. (c) Established in appropriation for Plant Expansion account with annual deposits of P20,000. (d) Increased the appropriation for bonded indebtedness by P20,000. Record the transactions in general journal entry form. 2. The stockholders' equity section of the Willard Corporation's balance sheet shows: Paid-in Capital Common Stock, P 100 par (10,000 shares 2 Total Stockholders' Equity P1,040,000 The board of directors declares an annual cash dividend of P7 per share, and, in addition, a 10% stock dividend. At the time of declaration, the fair market value of the common stock to be issued is P120. Present (a) the entry to record the declaration of the cash dividend, (b) the entry to record the declaration of the stock dividend, (c) the stockholders' equity section after the completion of the above transactions and the payment of the stock dividend. 3. a. Exercise: Based on the following information, prepare a retained earnings statement for the Mann Company for the year ended December 31. 192. stockholders' equity section after the completion of the above transactions and the payment of the stock dividend. 3. a. Exercise: Based on the following information, prepare a retained earnings statement for the Mann Company for the year ended December 31. 19X2. (1) The balances of the Unappropriated Retained Earnings account was P200,000 and appropriation for contingencies was P130,000 as of January 1,192. (2) Four quarterly dividends of P10,000 each have been declared. (3) The Mann Company earned a net profit of P52,000 for the year. (4) Other affected accounts appear below. The following accounts are taken from the ledger of Kookie Kola Corporation: 10\% Preferred Stock, - P20 par value; 10,000 shares authorized; 4,000 shares issued P 80,000 3 The board of directors declared a cash dividend of P20,000 for the year. No dividend was declared last year. Compute the distribution of the cash dividend to preferred and common stock under each of the following independent assumptions: a) Preferred stock is non-cumulative and non-participating b) Preferred stock is cumulative and non-participating c) Preferred stock is non-cumulative but fully participating d) Preferred stock is cumulative and fully participating. Compute the book values per share under assumptions a and d above