11 Exercises 1 Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock 5 Soints Common stock, 01 par value, 200,000 shares Preferred stock, 510 par valon, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: eBook a. Collected $400,000 cash and issued 20,000 shares of common stock, b. Issued 15,000 shares of preferred stock at $30 per share collected in cash. Hint Ash Net Income for the year was $50,000; cash dividends declared and pold at year-end were $10,000 Required: Prepare the stockholders' equity section of the balance sheet at December 31 SHELBY CORPORATION Balance sheet Partion References At December Stockholders' Equity Contributed Capital Total Contributed Capital Total Stockholders' Equity M w Pro 1 of 2 Next > The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $100,000 in the current year. It also declared and paid dividends on common stock in the amount of $2 per share. During the current year, Sneer had 1 million common shares authorized; 300,000 shares had been issued, and 100,000 shares were in treasury stock. The opening balance in Retained Earnings was $800,000 and Net Income for the current year was $300,000 Required: 1. Prepare journal entries to record the declaration, and payment of dividends on (a) preferred and (b) common stock, 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31 3. Prepare a journal entry to close the dividends account OM Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account held.) View transaction list Journal entry worksheet 1 2 Record the declaration of a cash dividend of $100,000 to the preferred stockholders No debits before credit