On January 1, 2022, Softmicro Corp was formed by issuing 10,000 shares of $5 par common stock and 1,000 shares of 8% $100 par cumulative preferred stock. The common stock was sold for $12 per share and the preferred stock was sold for $120 per share. • On January 2, 2022, the company acquired land by issuing 500 shares of common stock and 50 shares of preferred stock. • On December 1, Softmicro repurchased 1,500 shares of its common stock at $7.50 per share. • On December 15, Softmicro declared a dividend on its preferred stock and a $0.50 per share dividend on its common stock. • Net Income for 2022 was $500,000. Required: Prepare all necessary journal entries and the stockholders’ equity section of the December 31, 2022, balance sheet. Also note how many shares of common and preferred stock were issued, outstanding, and treasury.
On January 1, 2022, Softmicro Corp was formed by issuing 10,000 shares of $5 par common stock
and 1,000 shares of 8% $100 par cumulative
per share and the preferred stock was sold for $120 per share.
• On January 2, 2022, the company acquired land by issuing 500 shares of common stock and 50
shares of preferred stock.
• On December 1, Softmicro repurchased 1,500 shares of its common stock at $7.50 per share.
• On December 15, Softmicro declared a dividend on its preferred stock and a $0.50 per share dividend
on its common stock.
• Net Income for 2022 was $500,000.
Required: Prepare all necessary
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