Cascade Inn, Inc., included the following stockholders? equity on its year-end balance sheet at December 31, 2018:

Requirements

1. Identify the different issues of stock Cascade Inn, Inc., has outstanding.

2. Give the two entries to record issuance of Cascade Inn, Inc.?s stock. Assume all the stock was issued for cash. Explanations are not required.

3. Assume that preferred dividends are in arrears for 2017 and 2018. Record the declaration of a $40,000 cash dividend on December 30, 2019. Assume no change in the preferred stock account in 2019. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

Transcribed Image Text:

Stockholders' Equity $ Millions Paid-in Capital: Preferred Stock, 7% cumulative, par value $10 per share; 40,000 shares authorized, 7,100 shares issued and outstanding Common Stock, par value $4 per share; 700,000 shares authorized, 235,000 shares issued and outstanding Paid-in Capital in Excess of Par-Common Total Paid-in Capital Retained Earnings Total Stockholders' Equity $ 71,000 940,000 75,000 $1,086,000 210,000 $1,296,000