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.2. Prepare condensed balance sheet after each dividend has been paid or distributed

General Journal

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.

PAGE 1

GENERAL JOURNAL

DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

Text entry invalid

2

3

4

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.

PAGE 1

GENERAL JOURNAL

DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

2

3

4

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.

PAGE 1

GENERAL JOURNAL

DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

2

3

4

5

6

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.

PAGE 1

GENERAL JOURNAL

DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

2

3

4

5

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.

PAGE 1

GENERAL JOURNAL

DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

2

3

4

5

Balance Sheet

Prepare condensed balance sheet after dividends have been paid or distributed, assuming a cash dividend of $1.00 per share on the 15,000 shares outstanding.

Stamboul Company

Balance Sheet

December 31, 2016

1

Current Assets

2

Investment in Bonds

3

Fixed Assets (Net)

4

5

Current Liabilities

6

Common Stock

7

Retained Earnings

8

Prepare condensed balance sheet after dividends have been paid or distributed, assuming Stock dividend of 5% on the 15,000 shares outstanding when the market price is $17 per share.

Stamboul Company

Balance Sheet

December 31, 2016

1

Current Assets

2

Investment in Bonds

3

Fixed Assets (Net)

4

5

Current Liabilities

6

Common Stock

7

Retained Earnings

8

Prepare condensed balance sheet after dividends have been paid or distributed, assuming 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. (Also, assume any gain or loss is to be reflected in retained earnings. Disregard income taxes.)

Stamboul Company

Balance Sheet

December 31, 2016

1

Current Assets

2

Fixed Assets (Net)

3

4

Current Liabilities

5

Common Stock

6

Retained Earnings

7

Prepare condensed balance sheet after dividends have been paid or distributed, assuming a 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. (Also, assume any interest expense is to be reflected in retained earnings. Disregard income taxes.).

Stamboul Company

Balance Sheet

December 31, 2016

1

Current Assets

2

Investment in Bonds

3

Fixed Assets (Net)

4

5

Current Liabilities

6

Common Stock

7

Retained Earnings

8