a Made-Off, Corp's board of directors has authorized the issuance of 180,000 shares of $0.01 par common stock and 50,000 shares of $100 par, 9%, cumulative, participating preferred stock as of January 1, 2020. The following transactions occurred during the year. February 28, 2020: The company issued 50,000 shares of common stock for $410,000. March 31, 2020: Made-Off issued 2,000 shares of preferred stock to a vendor in exchange for specialized equipment. This is the first trade for the preferred stock, so no market value is available, but the equipment has a fair value of $203,000. April 30, 2020: Made-Off issues 40,000 shares of common stock and 2,500 shares of preferred stock in exchange for $630,000. The common and preferred shares were trading for $9 and $101 per share, respectively. May 30, 2020: Made-Off repurchased 6,000 shares of common stock for $60,000. June 30, 2020: Made-Off sold 3,000 shares of Treasury Stock for $11 per share. July 31, 2020: Made-Off sold 2,000 shares of Treasury Stock for $17,500. December 31, 2020: Balance Sheet Date - see (b) January 31, 2021: Made-Off declared and issued a 15% stock dividend to common shareholders when the stock price was $17.50 per share. February 1, 2022 - December 30, 2024: no activities or entries related to stock or dividends. December 31, 2024: Made-Off declared a cash dividend of $300,000. The dividend will be paid on January 20, 2025 to shareholders of record on January 15, 2025. Instructions: (a) [14 pts] Record the journal entries for all the above transactions through July 31, 2020. (6) [5 pts] Report the Stockholders' Equity Section of Made-Off as of December 31, 2020. (c) [3 pts] Record the journal entry for January 31, 2021. (d) [7 pts] Record the journal entry for the December 31, 2024 dividend declaration, ex-dividend date, and dividend payment, if any. (Assume only full years for calculating preferred dividends. Be sure to distinguish between amounts due or paid to preferred and common shareholders). a Made-Off, Corp's board of directors has authorized the issuance of 180,000 shares of $0.01 par common stock and 50,000 shares of $100 par, 9%, cumulative, participating preferred stock as of January 1, 2020. The following transactions occurred during the year. February 28, 2020: The company issued 50,000 shares of common stock for $410,000. March 31, 2020: Made-Off issued 2,000 shares of preferred stock to a vendor in exchange for specialized equipment. This is the first trade for the preferred stock, so no market value is available, but the equipment has a fair value of $203,000. April 30, 2020: Made-Off issues 40,000 shares of common stock and 2,500 shares of preferred stock in exchange for $630,000. The common and preferred shares were trading for $9 and $101 per share, respectively. May 30, 2020: Made-Off repurchased 6,000 shares of common stock for $60,000. June 30, 2020: Made-Off sold 3,000 shares of Treasury Stock for $11 per share. July 31, 2020: Made-Off sold 2,000 shares of Treasury Stock for $17,500. December 31, 2020: Balance Sheet Date - see (b) January 31, 2021: Made-Off declared and issued a 15% stock dividend to common shareholders when the stock price was $17.50 per share. February 1, 2022 - December 30, 2024: no activities or entries related to stock or dividends. December 31, 2024: Made-Off declared a cash dividend of $300,000. The dividend will be paid on January 20, 2025 to shareholders of record on January 15, 2025. Instructions: (a) [14 pts] Record the journal entries for all the above transactions through July 31, 2020. (6) [5 pts] Report the Stockholders' Equity Section of Made-Off as of December 31, 2020. (c) [3 pts] Record the journal entry for January 31, 2021. (d) [7 pts] Record the journal entry for the December 31, 2024 dividend declaration, ex-dividend date, and dividend payment, if any. (Assume only full years for calculating preferred dividends. Be sure to distinguish between amounts due or paid to preferred and common shareholders)
