Lindstrom Corporation was organized in January 2012. The state authorized 200,000 shares of no-par common stock and

Question:

Lindstrom Corporation was organized in January 2012. The state authorized 200,000 shares of no-par common stock and 50,000 shares of 12%, $25 par, preferred stock. Record the following transactions that occurred in 2012:

a. Issued 25,000 shares of common stock at $40 per share.

b. Issued 3,000 shares of preferred stock for a building appraised at $100,000.

c. Declared a cash dividend sufficient to meet the current-dividend preference on preferred stock and pay common shareholders $4.00 per share.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...