Reference no: EM132668547

Rice Corporation reported the following shareholders' equity items on December 31, 2014:

Preferred shares, $5, cumulative, 7,000 shares

?authorized, 1,000 shares issued?$153,200

Common shares, 10,000 shares authorized, 5,000

?shares issued?550,000

Retained earnings?455,300

Consider each of the following cases independently:

Question 1: ?How many common shares would be outstanding if Rice Corporation declares a 4-for-1 stock split?

Question 2: ?Prepare the journal entry if Rice Corporation declared a 15% stock dividend on the common shares ?when the market price of common shares was $130 per share.

Question 3: ?Prepare the journal entry if Rice Corporation declared a 45% stock dividend on the common shares ?when the market price of common shares was $130 per share.

Question 4: Give the journal entry to record the sale of 800 common shares for $125 per share.