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Adam 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
Adam 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 outstanding400,000
Paid-in capital in excess of par 110,000
Total paid-in capital810,000
Retained earnings 440,000
Total stockholders' equity$1,250,000
Record the following transactions which occurred consecutively (show all calculations).
1.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.
2.A 15% common stock dividend was declared. The average fair value of the common stock is $25 a share.
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