Sources of equity, Stock issuance, and Dividends
Tree Comfort Specialists, Inc., reported the following stockholders' equity on its balance sheet at June 30, 2011:
Tree comfort specialists, inc
Stock holders equity
June 30, 2011
Paid-in Capital
Preferred stock,7%, $5 par, 600,000 shares authorized, 220,000 shares used $1,100,000
Common stock, par value $1 per share, 9,000,000 shares authorized
1,340,000 shares issued and outstanding $1,340,000
Additional paid-in capital-common $2,900,000
Total paid in capital $5,340,000
Retained earnings $12,000,000
Total stockholders equity $17,340,000
1. Identify the different issues of stock that tree has outstanding.
2. What is the par value per share of tree's preferred stock?
3. Make two summary journal entries to record issuance of all tree stock for cash
4. No preferred dividends are in arrears. journalize the deceleration of a 400,000 dividend at June 30, 2011. Use separate dividends payable accounts for preferred and common.