Question 1: How do you record stock dividends? What about stock splits - how do you record them?
Question 2: Suppose we have dilutive securities, how do we handle them when computing diluted earnings per share?
Question 3: Suppose we have convertible preferred stock? How would we compute diluted earnings per share?
Question 4: Suppose we have convertible bonds? How would we compute diluted earnings per share?
Question 5: From the corporation's perspective, why might the issuance of long term debt (e.g., bonds payable) be a better choice for both the company and its investors than stock?