Prepare the stockholders' equity section (LO10-7) E 10-7 Refer to the information in E10-6. In its first year of operations, Finishing Touches has net income of $110,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,200 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31,2015. Record cash dividends (LO10-5) E 10-8 On March 15, American Eagle declares E10-8 On March 15, American Eagle declares a quarterly cash dividend of $0.10 per share. payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 250 million shares. Record common stock, treasury stock, and cash dividends (L010-2, 10-4, 10-5) E10-9 Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 200,000 shares of common stock outstanding as of the beginning of2015. Power Drive has the following transactions affecting stockholders' equity in 2015. March 1 Issues 25,000 additional shares of $ 1 par value common stock for $ 18 per share. May 10 Purchases 6,000 shares of treasury stock for $20 per share. June 1 Declares a cash dividend of $1.00 per share to all stockholders of record on June 15. October 21 Reissues 4,000 shares of treasury stock purchased on May 10 for $25 per share. Required: Record each of these transactions. Record stock dividends and stock splits (L010-6) E10-10 On October 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 20,000, $1 par, common shares. The market price of the common stock is $40 on this date. Required: 1. Record the stock dividend assuming a small (5%) stock dividend. 2. Record the stock dividend assuming a large (100%) stock dividend. 3. Record the stock dividend assuming a 2-for-l stock split