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Problem 2 a. On January 5th , J & J issued a property dividend. Investments (stock in the Duh Company) comprising of 1000 shares was

Problem 2

a. On January 5th , J & J issued a property dividend. Investments (stock in the Duh Company) comprising of 1000 shares was issued. The stock has a fair market value of $25 per share. The stock cost J & J $20 per share. They issued the Duh stock one month later. Prepare the entry.

b. On May 15th , J & J issued 5,000 shares of cumulative, 10% preferred stock, with a par value of $100 for $112 per share. Prepare the entry.

c. A subsidiary of J and J had outstanding, at the end of the year, 10,000 shares of common stock outstanding and 5,000 shares of non-cumulative/non-participating preferred stock. J & J wants to issue cash dividends totaling $80,000. Calculate how much goes to preferred stock holders and common stock holders

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