Required informationProblem 8-25 (Algo) Common and preferred stock-issuances and dividends LO 8-1, 8-2, 8-3[The following information applies to the questions displayed below.]Homestead Oil Corporation was incorporated on January 1, 2022, and issued the following stock for cash:• 890,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2022, at $17.00per share.• 220,000 shares of $110 par value, 8.50% cumulative, preferred stock were authorized; 63,000 shares were issued onJanuary 1, 2022, at $150 per share.• Net income for the years ended December 31, 2022 and 2023 was $1,210,000 and $2,680,000, respectively.• No dividends were declared or paid during 2022. However, on December 27, 2023, the board of directors ofHomestead declared dividends of $1,640,000, payable on February 11, 2024, to holders of record as of January 16,2024.Problem 8-25 (Algo) Part a - Journal EntryPrepare the journal entries to record each of the below transactions.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.1. The issuance of common stock and preferred stock on January 1, 2022.2. The declaration of dividends on December 27, 2023.3. The payment of dividends on February 11, 2024.View transaction list

Journal entry records the accounting transactions of a business in a journal book. All the business…

Answered: Homestead Oil Corporation was…

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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