Crawford-Austin Properties included the following stockholders' equity on its year-end balance sheet at December 31, 2006.

Requirements 

1. Identify the different issues of stock that Crawford-Austin has outstanding.
2. Is the preferred stock cumulative or noncumulative? How can you tell?

3. Give two summary journal entries to record issuance of all the Crawford-Austin stock. All the stock was issued for cash. Explanations are not required.

4. Preferred dividends are in arrears for 2005 and 2006. Record the declaration of a \(\$ 50,000\) cash dividend on December 30, 2007. Use separate Dividends Payable accounts for Preferred and Common. An explanation is not required. 

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Paid-in capital: Preferred stock, 6%. Stockholders' Equity Common stock-par value $1 per share; 650,000 shares authorized, 230,000 shares issued..................... Paid-in capital in excess of par-common. Total paid-in capital............ Retained earnings............. Total stockholders' equity. $ 65,000 230,000 70,000 365,000 2,000,000 $2,365,000