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The Board of Directors of Oriole Company is debating what type of dividend (or stock split)...

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 Oriole’s current stockholders’ equity:

Common stock, $10 par $ 400,000

Additional paid in capital – common stock 800,000

Retained earnings 1,300,000

  1. Assume the company chooses a cash dividend of $2.50 per share.
  1. Assume the company chooses a property dividend. This dividend will be paid using Oriole’s investment in shares of Blue, Inc.’s stock. This investment is carried on Oriole’s books at $250,000 and has a market value of $310,000 on the date of declaration.
  1. Assume the company chooses a 15% stock dividend.
  1. Assume the company chooses a 30% stock dividend.
  1. Assume the company chooses a 3-for-1 stock split.

it asks for journal entries to record each transaction

Solutions

Expert Solution

This solution comprises journal entiries.ries in the books of company.

ekkarill92 answered 2 years ago
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