t View History Bookmarks Window Help The following information applies to the qu

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t View History Bookmarks Window Help The following information applies to the questions displayed below. Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the following transactions affect stockholders' equity during 2018 beginning of 2018, 125 shares of preferred stock and 3,000 shares of common stock have been issued. The March 1 Issue 3,000 additional shares of common stock for $10 per share. April 1 Issue 175 additional shares of preferred stock for $40 per share. June 1 Declare a cash dlividend on both common and preferred stock of $0.25 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1 August 1 Purchase 175 shares of common treasury stock for $7 per share. October 1 Reissue 125 shares of treasury stock purchased on August 1 for $9 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $1,250: Common Stock, $3,000, Additional Paid-in Capital, $19,500, an $11.500. Net income for the year ended December 31, 2018, is $7,650. d Retained Earnings, value: 10.00 points Required information Required 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

Explanation / Answer

Journal entry date Accounting titles & explanations debit credit 1-Mar cash (3000*10) 30,000 common stock 3,000 paid in capital in excess of par 27,000 1-Apr cash (175*40) 7000 preferred stock (175*10) 1750 paid in capital in excess of par 5250 1-Jun retained earnings 1575 dividends payable -cs (6000*.25) 1500 dividends payable -PS (300*.25) 75 30-Jun dividends payable -cs 1500 dividends payable -PS 75 cash 1575 1-Aug treasury stock (175*7) 1225 cash 1225 1-Oct cash (125*9) 1125 Treasury stock (125*7) 875 paid in capital in excess of par-tS 250 total total total assets liabilties SE issue common stock increase increase issue preferred stock increase increase declare cash dividends increase decrease pay cash dividends decrease decrease purchase treasury stock decrease decrease reissue tS increase increase note dividends payable can be combined into one

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