1 a. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Companys charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the companys journal entries and statement of owners equity.

I . Issued ____shares of class A common stock. Stock has par value of ___ per share and was issued at $____ per share.

First name	# of shares issued	Par value	Issue price
Nally	80% of authorised shares	$60.00	$125.00

II. Issued _____ shares of no-par class B stock

name	# of shares issued	Issues Price
Nally	80% of authorised shares	$118.00

III. Issued _______ shares of preferred stock at par value.

name	# of shares issued	Par value
N,B,J,X,H	10% of authorised shares	$192.00

IV . Exchanged ______ shares of class A common stock for Office Furniture and Equipment with an appraised value of $______ and Motor Truck with an appraised value of $_____.

name	# of shares issued	Office furniture	Motor truck
Nally	20% of authorised shares	$4,000,000.00	$10,000,000.00

V. Earned Net income $______.

Firstname initial	Net income
Nally	1,500,000.00

1B. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.

Using the info above and as a guide:

1. Prepare the journal entries with narrations to record the following:

• The issuances of stock.
• Close out net income to retained earnings.
• Dividend declared.
• Close out dividend to retained earnings.

2. Prepare the companys Stockholders equity section of the balance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown:
   • information on par or par values for all classes of shares which must be shown separately.
   • the number of shares authorized and issued where necessary.
   • the sub total for the total paid in capital.