Question

please answer part B (fourth picture) first three should help!!

Question 2 Sarasota Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, 55 par (108,000 shares authorized, 21,600 shares issued) 108,000 Additional paid in capital 119,000 Retained earnings 419,000 Total $846,000 During 2020, Sarasota took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019 2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Sarasota uses the cost method. 3. Reissued 600 treasury shares for land valued at $27,800. 4. Issued 480 shares of preferred stock at $104 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $42 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021. (a) Your answer is correct Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Ir ne entry is required, select "No Entry for the account titles and enter for the amounts.) No. Account Tities and Explanation Debit Credit 1. Dividends Payable Common 43200

Answer 1

Sarasota company

Stockholder's equity

December 31, 2020

Capital stock
Preferred stock (10000 shares authorised, issued 2480 shares)	$248000
Common stock (108000 shares authorized,23650 issued, 22550 outstanding)	$118250
Total capital stock	$366250
Additional paid in capital	$199970
Total paid in capital	$566220
Retained earning ($419000+323000-86100-69900)	$586000
Total paid in capital and retained earning	$1152220
Less: cost of treasury stock (1100 shares)	$45100
Total stockholders equity	$1197320

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