After looking into debt financing through$$ notes, mortgage, and bonds$$ payable, Nature Gnome Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following$$ transactions, the balance in Common Stock on January$1,2028$ was $ $200$ comma $000$ and included $100$ comma $000$ shares of common stock issued and outstanding.$($There was no$$ Paid$-$In Capital in Excess of Parlong dash$$Common$.)$ Nature Gnome Company had the following transactions in $2028$:

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Part $1$

Requirement $1.$ Journalize the transactions. $($Record debits$$ first, then credits. Select the explanation on the last line of the journal entry$$ table.$)$

Jan.$1$: Issued $20$ comma $000$ shares of $$$$2$ par value common stock for a total of $ $80$ comma $000.$

Date

Accounts and Explanation

Debit

Credit

Jan. $1$

Cash

$80,000$

Common Stock$$$$2$ Par Value

$40,000$

Paid$-$In Capital in Excess of Par$$Common

$40,000$

Issued common stock at a premium.

Part $2$

Jan$10$: Issued $10$ comma $000$ shares of $2\%,$$$10$ par value preferred stock in exchange for land with a fair value of $ $150$ comma $000.$

Date

Accounts and Explanation

Debit

Credit

Jan. $10$

Land

$150,000$

Paid$-$In Capital in Excess of Par$$Preferred

$50,000$

Preferred Stock$$$$10$ Par Value

$100,000$

Issued preferred stock in exchange for land.

Part $3$

Dec.$15$: Declared total cash dividends of $ $5$ comma $000.$

Date

Accounts and Explanation

Debit

Credit

Dec. $15$

Cash Dividends

$5,000$

Dividends Payable$$Preferred

$2,000$

Dividends Payable$$Common

$3,000$

Declared a cash dividend.

Part $4$

Dec.$20$: Declared a $3\%$ common stock dividend when the market value of the stock was $ $5\mathrm{.}00$ per share.

Date

Accounts and Explanation

Debit

Credit

Dec. $20$

Dividends Payable$$Preferred

Common Stock Dividend Distributable