Superior Corporation has the following shares outstanding: Preferred shares: 6 percent: par $15;8,000 outstanding shares Common shares

Question:

Superior Corporation has the following shares outstanding:

Preferred shares: 6 percent: par $15;8,000 outstanding shares

Common shares par $8, 30, 000 outstanding shares

On October 1, 2014, the board of directors declared dividends as follows:

Preferred shares: Full cash preference amount, payable December 20, 2014.

Common shares: 10 percent common stock of dividend (i.e. one additional share for each 10 held), to be issued on December 20, 2014.

On December 20, 2014, the market prices were preferred shares, $40, and common shares, $32.

Required

Indicate the direction and amount of change in total assets, liabilities, and shareholders' equity as a result of:

(a) Declaration of the cash dividend on October 1,

(b) Payment of the cash dividend on December 20, and

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...