Chapter 10, Problem 10.5E

Record common stock, preferred stock, and dividend transactions (LO10–2, 10–3, 10–5)

Italian Stallion has the following transactions during the war related to stockholders’ equity.

February l	Issues 6,000 shares of no-par common stock for $l6 per share.
May 15	Issues 700 shares of $10 par value preferred stock for $13 per share.
October 1	Declares a cash dividend of $1.25 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.