13.

Homestead Oil Corp. was incorporated on January 1, 2013, and issued the following stock for cash:

820,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2013, at $19.00 per share.

260,000 shares of $110 par value, 9.00% cumulative, preferred stock were authorized, and 78,000 shares were issued on January 1, 2013, at $150 per share.

Net income for the years ended December 31, 2013 and 2014, was $1,370,000 and $2,550,000, respectively.

No dividends were declared or paid during 2013. However, on December 28, 2014, the board of directors of Homestead declared dividends of $1,580,000, payable on February 12, 2015, to holders of record as of January 19, 2015.

Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2013.(Enter decreases to account balances with a minus sign.)
Balance Sheet Income Statement Assets=Liabilities+Stakeholders Equity Net income = Revenue - Expenses 1. _______________=_______________+_________________ ___________=__________-_____________ 2._______________=_______________+_________________ ___________=__________-_____________ 3. _______________=_______________+_________________ ___________=__________-_____________