1) Larkspur, Inc. issues 8,700 shares of $101 par value preferred stock for cash at $118 per share. Journalize the issuance of the preferred stock.

2)The stockholders equity section of Culver Corporations balance sheet consists of common stock ($8 par) $1,040,000 and retained earnings $500,000. A 10% stock dividend (13,000 shares) is declared when the market price per share is $18. (a) Show the before-and-after effects of the dividend on the components of stockholders equity.