The Board of Directors of Oriole Company is debating what type of dividend (or stock split) to give its shareholders. The common stock is currently trading at $34 per share. The following is Orioles current shareholders equity:

Common stock, $10 par $ 400,000

Additional paid in capital, common stock 800,000

Retained earnings 1,300,000

Required:

For each of the independent alternative dividend scenarios outlined below, show the required journal entry(ies) at (1) the date of declaration and (2) the date of payment. If no journal entry is required, explain why not.

a/Assume the company chooses a cash dividend of $2.50 per share.

b/Assume the company chooses a property dividend. This dividend will be paid using Orioles investment in shares of Blue, Inc.s stock. This investment is carried on Orioles books at $250,000 and has a market value of $310,000 on the date of declaration.

c/Assume the company chooses a 15% stock dividend.

d/Assume the company chooses a 30% stock dividend.

e/Assume the company chooses a 3-for-1 stock split.