a) Cash Dividend Amount= No.

of Common Stock x $ Cash Dividend per shar

After Cash Dividend
Preferred Stock
Common stock (400,000 shares at $1 par)
Paid in capital in excess of par
Retained Earnings (320,000-80000)
Total Stockholders' Equity

b) Stock Dividend Amount= Common Stock Capital x % of Stock Dividend = $

After Stock Dividend
Preferred Stock
Common stock (440,000 shares at $1 par)
Paid in capital in excess of par
Retained Earnings (320,000-40000)
Total Stockholders' Equity
n Stock x $ Cash Dividend per share=400,000*$0.2= $80,000

$100,000
$400,000
$200,000
$240,000
$940,000

k Capital x % of Stock Dividend = $400,000*10% =$40,000

$100,000
$440,000
$200,000
$280,000
$1,020,000