On october 1, 2018, nicklaus corporation receives permission to replace its $1 par value common stock (6,000,000 shares authorized, 4,000,000 shares issued, and 3,800,000 shares outstanding) with a new common stock issue having a $.50 par value. since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. that is, the shareholders will receive two shares of the $.50 par stock in exchange for each share of the $1 par stock they own. the $1 par stock will be collected and destroyed by the issuing corporation.
on november 1, 2018, the nicklaus corporation declares a $0.20 per share cash dividend on common stock and a $0.37 per share cash dividend on preferred stock. payment is scheduled for december 1, 2018, to shareholders of record on november 15, 2018. on december 2, 2018, the nicklaus corporation declares a 2% stock dividend payable on december 28, 2018, to shareholders of record on december 14. at the date of declaration, the common stock was selling in the open market at $10 per share. the dividend will result in 152,000 (0.02 × 7,600,000) additional shares being issued to shareholders. required: 1. prepare journal entries to record the declaration and payment of these stock and cash dividends.

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02