Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows:

Common stock (2,400,000 shares at $5 par) $12,000,000
Capital in excess of par* 5,000,000
Retained earnings 24,000,000
Net worth $41,000,000

*The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price − Par value).

The company’s stock is selling for $20 per share. The company had total earnings of $4,800,000 during the year. With 2,400,000 shares outstanding, earnings per share were $2. The firm has a P/E ratio of 10.

Required:
a. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend?
b. What adjustments would be made to EPS and the stock price?
c. How many shares would an investor end up with if he or she originally had 90 shares?
d. What is the investor's total investment worth before and after the stock dividend if the P/E ratio remains constant?

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.