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:

Workplace Social Identity

The concept of how individuals perceive themselves within their workplace, shaped by their roles, responsibilities, and social interactions with colleagues.

Union Instrumentality

Represents the effectiveness of labor unions in achieving desired outcomes for their members, such as higher wages, better working conditions, and job security.

Social Pressure

The influence that is exerted on individuals or groups by others within their social or professional circle, often to conform or adopt particular behaviors.

Bargaining Unit

A designated group of employees represented by a union or labor organization for purposes of collective bargaining.