On July 1, 2020, Jones Limited had the following share structure:

Common shares (par $1; 200,000 authorized shares; 151,000 issued and outstanding) $ 151,000

Contributed surplus 89,000

Retained earnings 173,000

Required:

Complete the following table based on three independent cases involving share transactions: (Round your par value answers to 2 decimal places.)

Case 1: The board of directors declared and issued a 12 percent stock dividend when the share price was $8.10 per share.

Case 2: The board of directors declared and issued a 100 percent stock dividend when the share price was $8.10 per share.

Case 3:The board of directors voted a 2-for-1 stock split. The share price prior to the split was $8.10 per share.

Items Before

Share

Transactions After 10%Stock Dividend After 100%Stock Dividend After Stock Split

Number of shares outstanding

Par per share $1

Common shares account

Contributed surplus 89,000

Retained Earnings 173,000

Total shareholders equity

Q2

The 2020 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $119.8 million in 2020. It also declared and paid dividends on common shares in the amount of $1.90 per share. During 2020, Sneer had 1,000,000,000 common shares authorized; 387,470,300 shares had been issued. The balance in Retained Earnings was $1,553 million on December 31, 2019, and 2020 Net Income was $857 million.

Required:

1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not millions.)

A: Record the declaration of Dividend on preferred shares. Record the transaction. B: Record the payment of cash dividends on preferred shares. Record the transaction. C: Record the declaration of Dividend on common shares. Record the transaction. D: Record the payment of cash dividends on common shares. Record the transaction.

2. Using the information given above, prepare a statement of retained earnings for the year ended December 31, 2017. (Amount to be deducted should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)

SNEER CORPORATION

Statement of Retained Earnings

For the Year Ended December 31, 2017

(in millions)

Retained Earnings, January 1, 2017

Retained Earnings, December 31, 2017 $0.0