Robert Corporation was organized in 2009. At December 31,2009, Robert Corporation’s balance sheet reported the following stockholders’ equity:

Requirements Answer the following questions and make journal entries as needed:
1. What does the 6% mean for the preferred stock? After Robert Corporation issues preferred stock, how much in annual cash dividends would Robert Corporation expect to pay on 1,000 shares?
2. At what price per share did Robert Corporation issue the common stock during 2009?
3. Were the first-year operations profitable? Give your reasons.
4. During 2010, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.

a. Issued for cash 2,000 shares of preferred stock at par value.

b. Issued for cash 1,500 shares of common stock at a price of \($5\) per share.
5. Prepare the stockholders’ equity section of the Robert Corporation balance sheet at December 31, 2010. Assume net income for the year was \($65,000.

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Paid-in Capital: Stockholders' Equity Preferred Stock, 6%, $10 par, 35,000 shares authorized, none issued Common Stock, $1 par, 120,000 shares authorized, 11,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings (deficit) Total Stockholders' Equity $ 0 11,000 33,000 $44,000 (5,000) $39,000