Jenny OTB Corporation Reports the Following Shareholders' Equity as of December

question 42

Essay

Jenny OTB Corporation reports the following shareholders' equity as of December 31, 2021: Instructions
a) Assume the board of directors declares dividends totaling $ 1,500,000 to the shareholders. The preferred shares are cumulative, and no dividends were declared last year. Calculate the amount per share each class of shares will receive.
b) Assume the board of directors authorizes a 2-for-1 split on the common shares. Calculate the number of shares outstanding after the split and the average per share amount for both classes of shares.
c) Assume the board of directors authorizes a 10% stock dividend on the common shares after the stock split. The current selling price of the common shares is $ 11. Prepare the journal entry to record the declaration and distribution of the stock dividend.

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Definitions:

Comparative Performance Measurement

The process of evaluating the efficiency and effectiveness of an organization by comparing its outcomes with those of similar organizations.

Best Practice Standards

Guidelines or sets of principles recognized as the most effective and efficient means to achieve a desired outcome or to manage a process.

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Organizations or groups that monitor, evaluate, and report on the transparency, accountability, and effectiveness of charities and non-profit organizations.

Private Organizations

Organizations operated and funded by private individuals or groups, without governmental control, and may pursue profit or nonprofit activities.