Italian Stallion has the following transactions during the year related to stock

Question

Italian Stallion has the following transactions during the year related to stockholders' equity. February 1 Issues 4,100 shares of no-par common stock for $16 per share. May 15 Issues 200 shares of $10 par value, 3% preferred stock for $13 per share. October 1 Declares a cash dividend of $0.30 per share to all stockholders of record (both common and pre October 15 October 15 Date of record. October 31 Pays the cash dividend declared on October 1 ferred) on Required: Record each of these transactions. (Ilf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 Issues 4,100 shares of no-par common stock for $16 per share. Note: Enter debits before credits Date General Journal Debit Credit February 01

Explanation / Answer

Feb-01 Cash (4,100*$16) $ 65,600 Common stock $ 65,600 May-15 Cash (200*$13) $    2,600 Preferred stock (200*$10) $    2,000 Additional paid in capital $        600 Oct-01 Dividends ((4,100+200)*$0.30) $    1,290 Dividend payable $    1,290 Oct-15 no entry required Oct-31 Dividend payable $    1,290 Cash $    1,290

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