6. Storm Chaser Roofing and Siding, Inc. reported the following shareholders' equity section as of the beginning of the current year (Click the icon to view the data.) 2(Click the icon to view the additional information.) Read the requirements Requirement a. Prepare the journal entry required to record the preferred stock issue. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Current Year (1) (2) 3 (4) Requirement b. Prepare the journal entries required to record the declaration and payment of the cash dividends. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the journal entry for the declaration of the preferred shares dividends. Account Current Year (5) (6) (7) (8) Next, record the entry for the declaration of the common shares dividends. Account Current Year (9) (10) (11) (12) Now we can record the journal entry for the payment of the preferred dividends. Account Current Year (13) (14) (15) (16) Our final journal entry is for the payment of common dividends. Account Current Year (17) (18) (19) (20) Requirement c. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet, listing preferred data before common data. Use parentheses or Stc minus sign for numbers to be subtracted.) Stockholders' Equity Balance Contributed Capital (22) (21) (23) (25) (24) (26) (27) Total Contributed Capital (28) (29) (30) Total Stockholders' Equity 1: Data Table Stockholders' Equity Contributed Capital: Common Stock, $4 par value, 2,385,000 authorized and 785,000 shares issued, and 728,000 shares outstanding 3,140,000 20,125,000 Additional Paid-in Capital in Excess of Par - Common Total Contributed Capital 23,265,000 Retained Earnings 7,690,000 Accumulated Other Comprehensive Income (Loss) 897,000 (1,596,000) Less: Treasury Stock (57,000 common shares at cost) 30,256,000 Total Stockholders' Equity 2: More Info Storm Chaser also issued 825,000 shares of its $9 par value preferred stock. There is a 4% dividend rate on the preferred shares that Storm Chaser issued at $13 per share. The company paid $2,015,000 in underwriting fees to issue the shares. Storm Chaser reported $2,660,000 in net income for the year and declared and paid dividends of $2.80 per share on its common shares and 4% of par for the preferred shares. The company has 1,000,000 shares authorized for preferred stock. 3: Requirements Prepare the journal entry required to record the preferred stock issue. a. b. Prepare the journal entries required to record the declaration and payment of the cash dividends. Prepare the stockholders' equity section of the balance sheet at the end of the year. c
