Issuance of, and Dividends to, Common and Preferred Stock Barton Corporation began operations on January 1. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations.

Required
1. Prepare journal entries to record these transactions.
2. Prepare a table showing dividend allocations for both years assuming Barton declares the following cash dividends: Year 1, $50,000, and Year 2, $300,000.
3. Prepare the January 2 entry for issuance of 200,000 shares of common stock for $12 cash per share if

a. Common stock is no-par stock without a stated value.

b. Common stock is no-par stock with a stated value of $10 per share.

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Year 1 Jan. 1 2 3 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative preferred stock. Issued 200,000 shares of common stock for $12 cash per share. Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and merchandise inventory valued at $380,000.