Accounting -The Board of Directors of Oriole Company is debating

ACCT
802
Written Assignment #4

Deadline: your solution is to be submitted via
Blackboard no later than the deadline specified on your course schedule.

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 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.

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 Oriole’s investment in shares of Orange, 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.

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.

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