Exercise 10-5B Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3, 10-5)A company has the following transactions during the year related to stockholders’ equity. February 1 Issues 4,200 shares of no-par common stock for $15 per share.May 15 Issues 200 shares of $10 par value, 3.5% preferred stock for $12 per share.October 1 Declares a cash dividend of $0.35 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.) 1-Record the issuance of 4,200 shares of no-par common stock for $15 per share.2-Record the issuance of 200 shares of $10 par value preferred stock for $12 per share.3-Record the declaration of a cash dividend of $0.35 per share to all stockholders of record (both common and preferred) on October 15.4-Record the date of record entry.5-Record payment of the cash

Total cash dividend declared = (No. of common stock + No. of preferred stock) x cash dividend per…

Answered: A company has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 10-5B Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3, 10-5)

A company has the following transactions during the year related to stockholders’ equity.

February	1	Issues 4,200 shares of no-par common stock for $15 per share.
May	15	Issues 200 shares of $10 par value, 3.5% preferred stock for $12 per share.
October	1	Declares a cash dividend of $0.35 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.)

1-Record the issuance of 4,200 shares of no-par common stock for $15 per share.

2-Record the issuance of 200 shares of $10 par value preferred stock for $12 per share.

3-Record the declaration of a cash dividend of $0.35 per share to all stockholders of record (both common and preferred) on October 15.

4-Record the date of record entry.

5-Record payment of the cash

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