Question

u thors B-Call to 0 000 shares of 10% 50 p lus curative preferred stock and 110.000 B-Col Wir e d on to expand the business incorporated the charm the a shares of 52 par le common stock During thermo -Calceted the following bansactions Click the icon to view the transactions More info Read the requirements Requirement 1. Record the transactions in the general journal (Record debis fest, the credits Select the pla Od 2 od 17.000 shares of common stock for a building with m etal of $150 000 Accounts and Explanation 02 Oct. 6 od 650 shares of pro tector 5120 per share Issued 1 har m onok for cash 572 000 Declared a $1000 cash dividendo ofrecardon Od 20 Use a separate Oct 10 Didends Payable account for pretend common stock Oct 25 Pach Ca w as 910 0 Odtu d 0 shares of 5120 persone Accounts and Explanation 1 Record the transactions the gener a l 2 Pro the conoscere that October 31, 2018 Assume i-coronet income for the month was 595.000 Choose from any est or whoor any number in the mout needs and then continue to the next question

Answer 1

Date	Account titles and explanation	Debit	Credit
Oct 2	Building	$150000
	Common stock-$2 par value (17000*$2)		$34000
	Paid in capital in excess of par- Common stock (150000-34000)		$116000
	(To record common stock issued)
Oct 6	Cash (650*$120)	$78000
	Preferred stock- $50 par value (650*$50)		$32500
	Paid in capital in excess of par- Preferred stock (78000-32500)		$45500
	(To record preferred stock issued)
Oct 9	Cash	$72000
	Common stock-$2 par value (18000*$2)		$36000
	Paid in capital in excess of par- Common stock (72000-36000)		$36000
	(To record common stock issued)
Oct 10	Cash dividends	$11000
	Dividend payable- Preferred (650*$50*10%)		$3250
	Dividend payable- Common (11000-3250)		$7750
	(To record dividend declared)
Oct 25	Dividend payable- Preferred	$3250
	Dividend payable- Common	$7750
	Cash		$11000
	(To record dividend paid)

2)

Stockholders' Equity
Paid-in Capital
Preferred stock- $50 Par Value
80000	shares authorized	650	shares issued and outstanding	$32500
Paid in capital in excess of par- Preferred stock				45500
Common stock- $2 Par Value
110000	shares authorized	35000	shares issued and outstanding	70000
Paid in capital in excess of par- Common stock				152000
Total Paid-in Capital				300000
Retained earnings				80000
Total Stockholders' Equity				$380000

Common stock shares issued and outstanding= 17000+18000= 35000 shares

Retained earnings= Net income-Cash dividend

= $91000-11000= $80000