On June 30, 2011, Ole Town, Inc's reported its capital accounts as follows: Common Shares, no par, 40,000 shares outstanding $1,600,000 Retained Earnings 3,200,000 10. If a $2 per share cash dividend were declared but not paid. The capital accounts balances would show revised balances as follows: a. Common Shares: $1,520,000 and Retained Earnings: $3,280,000. b. Common Shares: $1,600,000 and Retained Earnings: $3,120,000. c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000. d. Common Shares: $1,520,000 and Retained Earnings: $3,120,000. e. None of the above but: . 11. A 100% stock dividend (considered as a large stock dividend) was declared and distributed. The capital accounts balances would show revised balances as follows: a. Common Shares: $1,760,000; Retained Earnings: $2,940,000 and Contributed Surplus: $100,000. b. Common Shares: $1,860,000 and Retained Earnings: $2,940,000. c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000. d. Common Shares: $1,860,000 and Retained Earnings: $3,460,000. e. None of the above but: .

12. A 10% stock dividend was declared and distributed. Just after the date of declaration, the shares were traded at $65 per share. The capital accounts balances would show revised balances as follows: a. Common Shares: $1,600,000; Retained Earnings: $2,940,000 and Contributed Surplus: $260,000. b. Common Shares: $1,860,000 and Retained Earnings: $2,940,000. c. Common Shares: $1,760,000 and Retained Earnings: $3,040,000. d. Common Shares: $1,760,000 and Retained Earnings: $3,460,000. e. None of the above but: would also accept at $59.09; thus common shares = 1,836,360; RE $2,963640