Rizzo Corporation has 30,000 shares of $50 par value, 4%, preferred stock (P/S) and 150,000 shares of $5 par value common stock (C/S) outstanding at year end,2017. All events are in chronological time order below.

a) Assume that Rizzo has reacquired 4,000 shares of common stock for use in a stock option plan. The preferred stock is cumulative and non-participating. One year’s P/S dividends is in arrears. A 15% cash dividend is declared for C/S holders. Provide the entry for the declaration of the dividend on both the C/S and P/S. Please compute (list separately) the amount of C/S & P/S dividends.

b) Rizzo declares a 10% stock dividend when the market price is $22 per share. Please prepare the entry made on declaration date by Rizzo.

c) What entry is made when the shares are issued?