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please answer all 3 questions. And all parts to each question. thank you so much!!! E14.2 (LO 1) Knudsen Corporation was organized on January 1,
please answer all 3 questions. And all parts to each question. thank you so much!!!
E14.2 (LO 1) Knudsen Corporation was organized on January 1, 2019. During its first year, the corpo- ration issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value com- mon stock. At December 31, the company declared the following cash dividends: 2019, $5,000; 2020, $12,000; and 2021, $28,000. Instructions 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 preferred stock dividend is 7% and cumulative. c. Journalize the declaration of the cash dividend at December 31, 2021, under part (b). E14.3 (LO 1) On January 1, 2020, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $18. b. Par value is $5, and market price is $20. Compare effects of a stock dividend and a stock split. E14.4 (L01) 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 sx stock dividend on the 50,000, S10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share Instructions Prepare a tabular summary of the effects of the alternative actions on the components of stockholders equity, outstanding shares, and par value per share. Use the following column headings: Before Action, After Stock Dividend, and After Stock Split Step by Step Solution
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