Q1. The stockholders' equity of Howell Company at July 31, 2018 is presented below:

Common stock, par value $20 $3,600,000

Paid-in capital in excess of par common stock 160,000

Retained earnings 10,650,000

Total Stockholders Equity $14,410,000

On August 1, 2018, the board of directors of Howell declared a 15% stock dividend on the common stock, to be distributed on September 15th. The market price of Howell's common stock was $68 on August 1, 2018. Prepare the journal entries for Howell for both the date of declaration and the date of distribution.

Q2. Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash.

a. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.)

b. Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $23 per share.