Question 1 - Penne Pharmaceuticals sold 9 million shares of its $1 par common stock to provide funds for research and development.

If the issue price is $14 per share, what is the journal entry to record the sale of the shares?

Question 2 - The shareholders' equity of MLS Enterprises includes $260 million of no par common stock and $520 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $60 million in 2016 after paying $22 million cash dividends in both 2015 and 2014.

What is the amount of dividends common shareholders will receive in 2016?

Question 3 - Agee Storage issued 26 million shares of its $1 par common stock at $11 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $9 per share.

Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee's total paid-in capital decline if it now reacquires 1 million shares at $16 per share?

Question 4 - The Jennings Group reacquired 4 million of its shares at $82 per share as treasury stock. Last year, for the first time, Jennings sold 2 million treasury shares at $83 per share.

By what amount will Jennings' retained earnings decline if it now sells the remaining 2 million treasury shares at $79 per share?

Question 5 -  Following is a recent Microsoft press release:

REDMOND, Wash.-March 15, 2014 - Microsoft Corp. today announced that its board of directors declared a quarterly dividend of $0.20 per share. The dividend is payable June 12, 2014 to shareholders of record on May 15, 2014.

Prepare the journal entries Microsoft used to record the declaration and payment of the cash dividend for its 9,700 million shares.

Question 6 - Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,800 shares of GE common stock that Adams had purchased in February for $81,000 as an investment. GE's shares had a market value of $43 per share on the declaration date.

Prepare the journal entries to record the property dividend on the declaration and payment dates.

Question 7 - On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 40 million, $1 par, common shares, to be distributed on July 1. The market price of Siewen common stock was $15 on June 13.

Prepare the journal entry to record the stock split if it is not to be effected in the form of a stock dividend.

What is the par per share after the split?

Question 8 - On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 120 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $35 on June 13.

Prepare the journal entry to record the stock split if it is to be effected in the form of a 100% stock dividend.

What is the par per share after the split?

Question 9 - The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2015:

During 2016, several events and transactions affected the retained earnings of Consolidated Paper.

Required:

1. Prepare the appropriate entries for these events.

a. On March 3 the board of directors declared a property dividend of 245,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $962,000). The investment shares had a fair value of $4 per share and were distributed March 31 to shareholders of record March 15.

b. On May 3 a 5-for-4 stock split was declared and distributed. The stock split was effected in the form of a 25% stock dividend. The market value of the $1 par common stock was $11 per share.

c. On July 5 a 3% common stock dividend was declared and distributed. The market value of the common stock was $11 per share.

d. On December 1 the board of directors declared the 7.5% cash dividend on the 88,000 preferred shares, payable on December 28 to shareholders of record December 20.

e. On December 1 the board of directors declared a cash dividend of $0,60 per share on its common shares, payable on December 28 to shareholders of record December 20.

2) (a) Record the declaration of the property dividend.

3) (a) Record the entry on the date of record.

4) (a) Record the distribution of the property dividend.

5) (b) Record the declaration and distribution of the stock split effected in the form of a stock dividend.

6) (c) Record the declaration and distribution of the stock dividend.

7) (d) Record entry for cash dividend on preferred stock on date of declaration.

8) (d) Record the entry on the date of record.

9) (d) Record the payment of cash dividends to preferred shareholders.

10) (e) Record the declaration of cash dividends to common shareholders.

11) (d) Record the entry on the date of record.

12) (d) Record the payment of cash dividends to common shareholders.

2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Inc. at December 31, 2016. Net income for the year was $780,000.

Question 10 - Hanmi Financial Corporation is the parent company of Hanmi Bank. The company's stock split was announced in the following Business Wire:

LOS ANGELES (BUSINESS WIRE) Jan. 20-Hanmi Financial Corporation (Nasdaq), announced that the Board of Directors has approved a two-for-one stock split, to be effected in the form of a 100 percent common stock dividend, Hanmi Financial Corporation stockholders of record at the close of business on January 31 will receive one additional share of common stock for every share of common stock then held. Distribution of additional shares issued as a result of the split is expected to occur on or about February 15.

At the time of the stock split, 39.5 million shares of common stock, $.001 par per share, were outstanding.

Required:

1. Prepare the journal entry, if any, that Hanmi recorded at the time of the stock split.

2. If Hanmi's stock price had been $51 at the time of the split, what would be its approximate value after the split (other things equal)?