Problem 2: Equity

DYE Co.'s Shareholders' Equity section appears below:

Shareholders' Equity at November 30, 2010

Preferred shares $154,000

(14,000 shares outstanding, $ 0.65 dividend, cumulative, non-voting)

Common shares, no par value, 62,000 outstanding 775,000

Retained earnings 150,000

Total Shareholders' Equity 1,079,000

Transactions
Date
Dec. 4	Board of Directors of DYE declared a 10% Stock Dividend	Market value of DYE Co.s stock $ 5.00 per share
Dec. 22	Board of Directors of DYE declared a 2-for-1 Stock Split	Market value of DYE Co.s stock $ 5.50 per share
Dec. 22	Board of Directors of DYE declared a Cash Dividend of $40,000	Payable to Shareholders of Record on Jan. 15, 2011

Other Information

Net income for 2010 was $190,000.

The companys fiscal year end is December 31, 2010.

No other dividends for were declared during 2010 except for those identified above.

Required:

Prepare the Journal Entries (transactions, adjusting and closing) on the dates indicated related to the Dividend information above. If no journal entries are required, write No Entry Required.

Date	Account	Debit	Credit
Dec. 4 Stock Dividend

Date	Account	Debit	Credit
Dec. 22 Stock Split

Date	Account	Debit	Credit
Dec. 22 Cash Dividend

b) What amount would appear in the Shareholders' Equity section for DYE Corporation at December 31, 2010, for the following items?:

1. Common Shares $___________________

2. Number of common shares outstanding ___________________

3. Retained Earnings $___________________

4. Total Shareholders' Equity $___________________

Problem 2: Equity DYE Co.'s Shareholders' Equity section appears below: Shareholders' Equity at November 30, 2010 Preferred shares (14,000 shares outstanding, S 0.65 dividend, cumulative, non-voting) Common shares, no par value, 62,000 outstanding Retained earnings Total Shareholders' Equity $154,000 ransactions Board of Directors of DYE declared a 10% Stock Dividend Market value of DYE Co.'s stock S 5.00 per share Dec. 4 Dec. 22 Dec. 22 f Directorsdo ec alue o s stoc for-1 Stock Split Board of Directors of DYE declared a Cash Dividend of $40,000 S 5.50 per share Payable to Shareholder's of Record on Jan. 15, 2011 Other Information . Net income for 2010 was $190,000 . The company's fiscal year end is December 31, 2010. No other dividends for were declared during 2010 except for those identified above. Required: a) Prepare the Journal Entries (transactions, adjusting and closing) on the dates indicated related to the Dividend information above. If no journal entries are required, write "No Entry Required" ate Account it Dec. 4 Stock Dividend ate ccount it dit Dec. 22 Stock Split Account bit redit Dec. 22 Cash Dividend What amount would appear in the Shareholders' Equity section for DYE Corporation at December 31,2010, for the following items2: 1. b) Common Shares Number of common shares outstanding Retained Earnings Total Shareholders' Equity 2. 3. 4