Sources of equity, stock issuance, and dividends [15-20 min]Tree Comfort Specialists, Inc....

Sources of equity, stock issuance, and dividends [15-20 min]

Tree Comfort Specialists, Inc., reported the following stockholders’ equity on its balance sheet at April 30, 2012.

Requirements

1. Identify the different issues of stock that Tree has outstanding.

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2. What is the par value per share of Tree’s preferred stock?

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3. Make two summary journal entries to record issuance of all the Tree stock for cash. Explanations are not required.

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4. No preferred dividends are in arrears. Journalize the declaration of a $300,000 dividend at April 30, 2012. Use separate Dividends payable accounts for preferred and common. An explanation is not required.