Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 43

Determining the Impact of Cash and Stock Dividends
Superior Corporation has the following capital stock outstanding:

On October 1, 2013, the board of directors declared a full preferred stock dividend, payable on December 20. 2013. On December 20, 2013, the market prices were preferred stock, $40, and common stock, $32.
Required:
Indicate the direction and amount of change in total assets liabilities, and stockholders' equity as a result of: ( a ) declaration of the cash dividend on October 1, ( b ) payment of the cash dividend on December 20, and (c) a 100 percent common stock dividend on December 20.