1.A company has the following capital structure at the beginning of the year:

4% Preferred stock, $50 par value, 20,000 shares authorized,

6,000 shares issued and outstanding $ 300,000

Common stock, $10 par value, 60,000 shares authorized,

40,000 shares issued and outstanding 400,000

Paid-in capital in excess of par 110,000

Total paid-in capital 810,000

Retained earnings 440,000

Total stockholders' equity $1,250,000

Using T-account format, prepare the entries to recognize the following transactions which occurred consecutively.

a.A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.

b.A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share.

c.Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.