ABC Corporation has the following capital structure at the beginning of the year: 5% 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 the attached T-account template:

Document the balances in each account. Label the balances with BAL

Prepare the entries to recognize the transactions listed below. Label the transactions, a b and c

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 $25 a share.

c)Assume that net income for the year was $160,000 and management has closed the revenue and expense accounts to the Income Summary account. Prepare the closing entry.

d)The board of directors appropriated $70,000 of retained earnings for a planned manufacturing plant expansion.