The board of directors declares an annual cash dividend of P7 per share, and, in addition, a 10% stock dividend. At the time of declaration, the fair market value of the common stock to be issued is P 120. Present (a) the entry to record the declaration of the cash dividend, (b) the entry to record the declaration of the stock dividend, (c) the stockholders' equity section after the completion of the above transactions and the payment of the stock dividend. 3. a. Exercise: Based on the following information, prepare a retained earnings statement forthe Mann Company for the year ended December 31. 19X2. The balances of the Unappropriated Retained Earnings account was P200,000 and appropriation for contingencies was P130,000 as of January 1, 19X2. (1) (2) Four quarterly dividends of P 10,000 each have been declared. (3) The Mann Company earned a net profit of P 52,000 for the year. (4) Other affected accounts appear below. Appropriation for Contingencies Appropriation for Bonder Indebtedness Dec. 31 30,000 Jan. 1 Bal. 130,000 The following accounts are taken from the ledger of Kookie Kola Corporation: 10% Preferred Stock, - P20 par value; 10,000 shares authorized; 4,000 shares issued Common Stock - P50 par value;5,000 shares authorized; P 80,000 Jan.1 Bal. 110,000 2,000 shares issued Retained Earnings 100,000 50,000 The board of directors declared a cash dividend of P20,000 for the year. declared last year. Nodividend was Compute the distribution of the cash dividend to preferred and commonstock under each of the following independent assumptions: a) Preferred stock is non-cumulative and non-participating b) Preferred stock is cumulative and non-participating c) Preferred stock is non-cumulative but fully participating d) Preferred stock is cumulative and fully participating. Compute the book values per share under assumptions a and d above