Italian Stallion has the following transactions during the year related to stockholders ' equity February 1 Issues 5,000 shares of no par common stock for $15 per share May 15 Issues 500 shares of $10 par value preferred stock for $12 per share October 1 Declares a cash dividend of $0 75 per share ...

February 1 Debit Credit Cash 5000 x 15 75000 Common Stock 5000 x 15 75000 Issue comm ...

Italian Stallion has the following transactions during the year related to stockholders' equity. February 1 Issues 5,000

Question:

Italian Stallion has the following transactions during the year related to stockholders' equity.
February 1 Issues 5,000 shares of no-par for $15 per share.
May 15 Issues 500 shares of $10 preferred stock for $12 per share.
October 1 Declares a cash of $0.75 per share to all stockholders of record (both common and preferred) on October 15.
October 15 Date of record.
October 31 Pays the cash 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,...