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

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

Terrific Comfort Specialists, Inc., reported the following stockholders’ equity on its balance sheet at June 30, 2012:

Requirements

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

---

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

---

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

---

4. No preferred dividends are in arrears. Journalize the declaration of a $600,000 dividend at June 30, 2012. Use separate Dividends payable accounts for preferred and common. An explanation is not required.