20) Identify each of the following actions taken by the board of directors of Gem’s Jewelers. Each term is used only once.
a. stock split
b. declaration date
c. treasury stock
d. issued stock
e. dividends in arrears
______ 1. Authorized payment of back dividends to preferred shareholders
______ 2. Authorized the sale of 500 new shares of stock to the public
______ 3. Authorized the repurchase of 500 shares of Gem’s Jewelers stock
______ 4. Authorized the exchange of two new shares of stock for every one existing share
______ 5. Authorized the payment of a cash dividend on March 15
21) Identify each of the following situations using the following items. Each item is used only once.
a. stock split
b. stock dividend
c. treasury stock
d. cash dividend
e. dividends in arrears
______ 1. Team Shirts exchanged two shares of new stock for every share of existing stock.
______ 2. U Bet, Inc. skipped this year’s dividends for preferred stock.
______ 3. Team Shirts paid $1.00 to each shareholder.
______ 4. Team Shirts gave one share of stock for every 10 shares outstanding.
______ 5. Team Shirts bought 300 shares of Team Shirts’ stock.