Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30,2024:Data TableStockholders' EquityPaid-In Capital: Preferred Stock—7%, ? Par Value; 750,000 shares authorized, 400,000 shares issued and outstanding$1,600,000Common Stock—$1 Par Value; 9,000,000 shares authorized, 1,300,000 shares issued and outstanding1,300,000Paid-In Capital in Excess of Par—Common2,500,000Total Paid-In Capital5,400,000Retained Earnings12,500,000Total Stockholders' Equity$17,900,0001.Identify the different classes of stock thatThurmanComfort Specialists has outstanding.2.What is the par value per share ofThurmanComfort Specialists' preferred stock?3.Make two summary journal entries to record issuance of all theThurmanComfort Specialists' stock for cash. Explanations are not required.4.No preferred dividends are in arrears. Journalize the declaration of a$700,000dividend at June 30,2024,and the payment of the dividend on July 20,2024.Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

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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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Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30,

2024:

Data Table

Stockholders' Equity
Paid-In Capital:
Preferred Stock—7%, ? Par Value; 750,000 shares authorized, 400,000 shares issued and outstanding	$1,600,000
Common Stock—$1 Par Value; 9,000,000 shares authorized, 1,300,000 shares issued and outstanding	1,300,000
Paid-In Capital in Excess of Par—Common	2,500,000
Total Paid-In Capital	5,400,000
Retained Earnings	12,500,000
Total Stockholders' Equity	$17,900,000

1.	Identify the different classes of stock that Thurman Comfort Specialists has outstanding.
2.	What is the par value per share of Thurman Comfort Specialists' preferred stock?
3.	Make two summary journal entries to record issuance of all the Thurman Comfort Specialists' stock for cash. Explanations are not required.
4.	No preferred dividends are in arrears. Journalize the declaration of a $700,000 dividend at June 30, 2024, and the payment of the dividend on July 20, 2024. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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