The stockholders equity for Icy Pop Drive-Ins (IP) on December 31, 2010, follows: Stockholders Equity Common stock

Question:

The stockholders equity for Icy Pop Drive-Ins (IP) on December 31, 2010, follows:
Stockholders’ Equity
, $0.30 par, 2,200,000 shares
authorized, 400,000 shares issued...................... $ 120,000
Paid-in capital in excess of par common........... 409,600
Retained earnings.............................................. 7,133,000
Other equity...................................................... (185,000)
Total stockholders equity.................................. $7,477,600
On August 15, 2011, the market price of IP common stock was $15 per share. Assume IP distributed a 20% stock on this date.

Requirements
1. Journalize the of the stock Prepare the stockholders equity section of the after the stock Why is total stockholders equity unchanged by the stock Suppose IP had a cash balance of $590,000 on August 16, 2011. What is the maximum amount of cash dividends IP can declare?

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