identify the different issues of stock that tree has outstanding 644471
Sources of equity, stock issuance, and dividends Tree Comfort Specialists, Inc., reported the following stockholders’ equity on its balance sheet at April 30, 2012.
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TREE COMFORT SPECIALISTS, INC. Stockholders’ Equity April 30, 2012 |
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Paid in Capital: |
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Preferred stock, 6%, ? par, 675,000 shares authorized, 240,000 shares issued |
$ 1,200,000 |
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Common stock, par value $1 per share, 9,000,000 shares authorized, |
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1,330,000 shares issued and outstanding |
1,330,000 |
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Paid in capital in excess of par—common |
2,600,000 |
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Total paid in capital |
5,130,000 |
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Retained earnings |
11,900,000 |
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Total stockholders’ equity |
$ 17,030,000 |
Requirements
1. Identify the different issues of stock that Tree has outstanding.
2. What is the par value per share of Tree’s preferred stock?
3. Make two summary journal entries to record issuance of all the Tree stock for cash. Explanations are not required.
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.