Italian Stallion has the following transactions during the year related to stockholders equity. February 1 Issues 6,000
Question:
February 1 Issues 6,000 shares of no-par common stock for $16 per share.
May 15 Issues 700 shares of $10 par value preferred stock for $13 per share.
October 1 Declares a cash dividend of $1.25 per share to all stockholders of record (both common and preferred) on October 15.
October 15 Date of record.
October 31 Pays the cash dividend declared on October 1.
Required:
Record each of these transactions.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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February 1 Debit Credit Cash 6000 x 16 96000 Common Stock 6000 x 16 96000 Issue comm...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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