#3. (Lump-Sum Sales of Stock with Preferred Stock) - Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions (a) Prepare the journal entry for the issuance when the market value of the common shares is $95 each and market value of the preferred is $60 each. Date Account Debit Credit b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share Date Account Debit Credit #4. (Stock Issuances & Repurchase) - Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took part in the following transactions: 1. Issued 55,000 shares of stock at $76 per share, less costs related to the issuance of stock totaling $27,000. 2. Issued 10,000 shares of stock for land appraised at $815,000. The stock was actively traded on a national stock exchange at approximately $78 per share on the date of issuance. 3. Purchased 6,000 shares of treasury stock at $74 per share. The treasury shares purchased were issued in 2009 at $46 per share Instructions: (a) Prepare the journal entry to record item #1. Date Account Debit Credit (b) Prepare the journal entry to record item #2. Date Account Debit Credit 1 (c) Prepare the journal entry to record item #3 using the cost method. Date Account Debit Credit #5. (Declaration and Payment of Dividend) - On February 1, Kristy Corporation declared a cash declared a cash dividend of $2 a share on 70,000 shares payable March 15 to all stockholders. The record date for the dividend is February 24. Instructions: (a) Prepare the journal entry to record the declaration of dividends on February 1. Date Account Debit Credit (b) Prepare the journal entry for the record date on February 24. Date Account Debit Credit (c) Prepare the journal entry to record the payment of dividend on March 15. Date Account Debit Credit