Question

Italian Stallion has the following transactions during the year related to stockholders' equity 1 Issues 4,700 shares of no-par common stock for $16 per share. February May 15 Issues 300 shares of $10 par value, 6% preferred stock for $13 per share. October 1 Declares a cash dividend of $0.60 per share to all stockholders of record (both common and preferred) on October 15 October 15 Date of record. October 31 Pays the cash dividend declared on October 1. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 4 5 Record the issuance of 4,700 shares of no-par common stock for $16 per share. Note: Enter debits before credits. Debit Credit Date General Journal February 01 Record entry View general journal Clear entry

Answer 1

Journal Entries
Date	ACCT Title and explanation	Debit	Credit
February, 01	Cash (4,700 Shares X $ 16)	$75,200
	Common Stock		$75,200
May, 15	Cash (300 Shares X $ 13)	$3,900
	Preferred Stock		$3,000
	Paid in Capital in excess of par - Preferred Stock		$900
Oct, 01	Retained Earnings (5000 Shares X $ 0.60)	$3,000
	Dividend Payable - Common Shares (4700 X $ 0.6)		$2,820
	Dividend Payable - Preferred Shares (300 X $ 0.6)		$180
Oct, 15	" No Journal Entry is required for record date"
Oct, 31	Dividend Payable - Common Shares	$2,820
	Dividend Payable - Preferred Shares	$180
	Cash		$3,000