Stamboul Company lists the following condensed balance sheet as of the beginning of 2016:

Stamboul Company

Balance Sheet

Beginning of 2016

1	Current Assets	$60,000.00
2	Investment in Ostend bonds	9,000.00
3	Fixed Assets (Net)	200,000.00
4		$269,000.00
5	Current Liabilities	$30,000.00
6	Common Stock, no par	150,000.00
7	Retained Earnings	89,000.00
8		$269,000.00

Stamboul is considering the impact of various types of dividends on this balance sheet. Each dividend would be declared and paid in 2016. These include:

1.	Cash dividend of $1.00 per share on the 15,000 shares outstanding.
2.	Stock dividend of 5% on the 15,000 shares outstanding when the market price is $17 per share.
3.	Property dividend consisting of the $9,000 (book value) investment in Ostend bonds being held to maturity. This investment has a current market value of $13,000. (For Requirement 2, assume any gain or loss is to be reflected in retained earnings. Disregard income taxes.)
4.	Scrip dividend of $0.80 per share on the 15,000 shares outstanding. The scrip earns interest at a 12% annual rate and is to be declared on January 30 and paid on December 30, 2016. (For Requirement 2, assume any interest expense is to be reflected in retained earnings. Disregard income taxes.)
5.	Cash dividend consisting of a $0.70 per share normal dividend and a $0.30 per share liquidating dividend.

Required:

	For each preceding independent dividend:
	1. Prepare the appropriate journal entries for the declaration and payment or distribution of the dividend. Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming a cash dividend of $1.00 per share on the 15,000 shares outstanding. Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming a stock dividend of 5% on the 15,000 shares outstanding when the market price is $17 per share. Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming a property dividend consisting of the $9,000 (book value) investment in Ostend bonds being held to maturity. This investment has a current market value of $13,000. Prepare the appropriate journal entries for the declaration on January 30 and payment or distribution of the dividend on December 30, assuming a scrip dividend of $0.80 per share on the 15,000 shares outstanding. The scrip earns interest at a 12% annual rate. Prepare the appropriate journal entries for the declaration on December 1 and payment or distribution of the dividend on December 15, assuming a cash dividend consisting of a $0.70 per share normal dividend and a $0.30 per share liquidating dividend.
	2. Prepare a condensed balance sheet after each dividend has been paid or distributed.

CHART OF ACCOUNTS

Stamboul Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation
191	Investment in Bonds

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable
271	Dividends Payable
272	Property Dividends Payable

	EQUITY
311	Common Stock
315	Common Stock to be Distributed
325	Contributed Capital: Liquidating Dividends
331	Retained Earnings

	REVENUE
411	Sales Revenue
434	Gain on Disposal of Investment

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense