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 based on the following information which is grouped according to your first name initial. (the initial to be used is N and that person should only use the info presented in line with the heading with their first name initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.)

I . Issued ____shares of class A common stock. Stock has par value of ___ per share and was issued at $____ per share. (Please refer to table below and use only the info in line with your first name initial ( N) in the blank/underlined space).

First name/ initial	# of shares issued	Par value	Issue price
A,P,I,E,V	30% of authorised shares	$20.00	$28.00
C,O,R,Y	20% of authorised shares	$30.00	$40.00
K,Q,M,F	40% of authorised shares	$45.00	$62.00
S,W,G,Z	50% of authorised shares	$45.00	$75.00
D,T,L,U	60% of authorised shares	$48.00	$105.00
N,B,J,X,H	80% of authorised shares	$60.00	$125.00

II. Issued _____ shares of no-par class B stock (Please refer to table below and use only the info in line with your first name initial (N) in the blank/underlined space).

Firstname Initial	# of shares issued	Issues Price
A,P,I,E,V	30% of authorised shares	$ 25.00
C,O,R,Y	20% of authorised shares	$38.00
K,Q,M,F	40% of authorised shares	$60.00
S,W,G,Z	50% of authorised shares	$70.00
D,T,L,U	60% of authorised shares	$98.00
N,B,J,X,H	80% of authorised shares	$118.00

III. Issued _______ shares of preferred stock at par value. (Please refer to table below and use only the info in line with your first name initial (N) in the blank/underlined space).

Firstname Initial	# of shares issued	Par value
A,P,I,E,V	50% of authorised shares	$100.00
C,O,R,Y	40% of authorised shares	$110.00
K,Q,M,F	30% of authorised shares	$125.00
S,W,G,Z	25% of authorised shares	$145.00
D,T,L,U	20% of authorised shares	$168.00
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 $_____. (Please refer to table below and use only the info in line with your first name initial (N) in the blank/underlined space).

Firstname initial	# of shares issued	Office furniture	Motor truck
A,P,I,E,V	40% of authorised shares	$4,000,000.00	$10,000,000.00
C,O,R,Y	50% of authorised shares	$4,000,000.00	$10,000,000.00
K,Q,M,F	40% of authorised shares	$4,000,000.00	$10,000,000.00
S,W,G,Z	40% of authorised shares	$4,000,000.00	$10,000,000.00
D,T,L,U	40% of authorised shares	$4,000,000.00	$10,000,000.00
N,B,J,X,H	20% of authorised shares	$4,000,000.00	$10,000,000.00

V. Earned Net income $______. (Please refer to table below and use only the info in line with your first name initial (N) in the blank/underlined space)

Firstname initial	Net income
A,P,I,E,V	$1,500,000.00
C,O,R,Y	$1,800,000.00
K,Q,M,F	$2,000,000.00
S,W,G,Z	$1,400,000.00
D,T,L,U	1,450,000.00
N,B,J,X,H	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.