The Davenport Hotel, Inc., included the following stockholders? equity on its year-end balance sheet at December 31,

Question:

The Davenport Hotel, Inc., included the following stockholders? equity on its year-end balance sheet at December 31, 2018.

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Requirements

1. Identify the different issues of stock that the Davenport Hotel, Inc., has outstanding.

2. Give the two entries to record issuance of the Davenport Hotel, Inc.?s stock. Assume that all the stock was issued for cash. Explanations are not required.

3. Assume that preferred dividends are in arrears for 2017 and 2018. Record the declaration of a $45,000 cash dividend on December 30, 2019. Assume no change in the preferred stock account in 2019. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial Accounting

ISBN: 978-0134727790

5th edition

Authors: Robert Kemp, Jeffrey Waybright

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