Problem $1$

Year $1$: Snow Co$.$ just IPO'd! They issued $1,000$ shares of $$\mathrm{.}01$ par value common stock for

$$\frac{10}{?}$ share and $500$ shares of $$1$ par value preferred stock for $$\frac{15}{?}$ share.

Year $2$: Snow Co$.$ issued $500$ additional shares of $$\mathrm{.}01$ par value common stock for $$\frac{20}{?}$ share.

Year $3$: Snow Co$.$ repurchases $400$ shares of its stock $($treasury stock$)$ for $$\frac{18}{?}$ share.

Year $4$: Snow Co$.$ reissues $300$ shares of its treasury stock for $$22/$share$.$

$1$: Complete the journal entries for the above transactions.

$2$: If$,$ at the end of year $4,NI$ was $$50,000,$ calculate EPS.

Problem $2$

Snow Co$.$ wants to show its shareholders some appreciation. However, they aren't sure whether

or not to issue a cash dividend, stock dividend, or stock split. Journalize the following scenarios:

$1$: They declare a $$\frac{1}{?}$ share cash dividend during Year $4.$ The date of declaration is April $1,$ date

of record is May $7,$ and date of payment is June $3($all of Year $4)$

$2$: They issue a stock dividend of $10\%.$ Current market price is $$\frac{15}{?}$ share.

$3$: They issue a stock dividend of $30\%.$ Current market prices is $$\frac{15}{?}$ share.

$4$: They do a $10$:$1$ stock split.