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Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Éxclude explanations from any journal entries.) Begin by recording the declaration of a $ 600,000 dividend at June 30, 2018. Date Accounts Debit Credit Jun. 30 Cash Dividends Dividends Payable Preferred Dividends Payable-Common Record the payment of the dividend on July 20, 2018. Date Accounts Debit Credit Jul. 20 Dividends Payable-Preferred Dividends Payable-Common Cash Stockholders' Equity Paid-In Capital: Preferred Stock-8%, ? Par Value; 725,000 shares authorized, 220,000 shares issued and outstanding 1,100,000 Common Stock-$1 Par Value; 6,000,000 shares authorized, 1,330,000 shares issued and outstanding 1,330,000 Paid-In Capital in Excess of Par-Common 2,500,000 Total Paid-In Capital 4,930,000 Retained Earnings 12,400,000 17,330,000 Total Stockholders' Equity

Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Éxclude explanations from any journal entries.) Begin by recording the declaration of a $ 600,000 dividend at June 30, 2018. Date Accounts Debit Credit Jun. 30 Cash Dividends Dividends Payable Preferred Dividends Payable-Common Record the payment of the dividend on July 20, 2018. Date Accounts Debit Credit Jul. 20 Dividends Payable-Preferred Dividends Payable-Common Cash Stockholders' Equity Paid-In Capital: Preferred Stock-8%, ? Par Value; 725,000 shares authorized, 220,000 shares issued and outstanding 1,100,000 Common Stock-$1 Par Value; 6,000,000 shares authorized, 1,330,000 shares issued and outstanding 1,330,000 Paid-In Capital in Excess of Par-Common 2,500,000 Total Paid-In Capital 4,930,000 Retained Earnings 12,400,000 17,330,000 Total Stockholders' Equity

FINANCIAL ACCOUNTING
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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Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Éxclude explanations from any journal entries.) Begin by recording the declaration of a $ 600,000 dividend at June 30, 2018. Date Accounts Debit Credit Jun. 30 Cash Dividends Dividends Payable Preferred Dividends Payable-Common Record the payment of the dividend on July 20, 2018. Date Accounts Debit Credit Jul. 20 Dividends Payable-Preferred Dividends Payable-Common Cash
Transcribed Image Text:Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Éxclude explanations from any journal entries.) Begin by recording the declaration of a $ 600,000 dividend at June 30, 2018. Date Accounts Debit Credit Jun. 30 Cash Dividends Dividends Payable Preferred Dividends Payable-Common Record the payment of the dividend on July 20, 2018. Date Accounts Debit Credit Jul. 20 Dividends Payable-Preferred Dividends Payable-Common Cash
Stockholders' Equity Paid-In Capital: Preferred Stock-8%, ? Par Value; 725,000 shares authorized, 220,000 shares issued and outstanding 1,100,000 Common Stock-$1 Par Value; 6,000,000 shares authorized, 1,330,000 shares issued and outstanding 1,330,000 Paid-In Capital in Excess of Par-Common 2,500,000 Total Paid-In Capital 4,930,000 Retained Earnings 12,400,000 17,330,000 Total Stockholders' Equity
Transcribed Image Text:Stockholders' Equity Paid-In Capital: Preferred Stock-8%, ? Par Value; 725,000 shares authorized, 220,000 shares issued and outstanding 1,100,000 Common Stock-$1 Par Value; 6,000,000 shares authorized, 1,330,000 shares issued and outstanding 1,330,000 Paid-In Capital in Excess of Par-Common 2,500,000 Total Paid-In Capital 4,930,000 Retained Earnings 12,400,000 17,330,000 Total Stockholders' Equity
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