Assignment Instructions: WeatherStrip Co. needed an infow of capital to expand their business.So the business incorporated and decided to issue stock. The charter from the state of Arkansas authorizes WeatherStrip to issue 150,000 shares of 7%, $100 par value preferred stock, and 400,000 shares of $3 par value common stock.Record the following stock transactions in the general journal on the "Worksheet(a)" tab.Then prepare the stockholder's equity section only of WeatherStrip's balance sheet as of December 31, 2016 on "Worksheet(b)" tab.Assume WeatherStrip had net income of $115,000 for the month of December. Upload your file in Blackboard when you are finished. Memo entries are already provided.

Dec. 1, 2016 Issued 90,000 shares of common stock for cash when the market value of the shares was $16 per share.

Dec. 5, 2016 Issued 700 shares of preferred stock for cash for $150 per share.

Dec. 11, 2016 Issued 30,000 shares of common stock for cash when the market value of the shares was $15 per share.

Dec. 14, 2016 The board of directors of WeatherStrip declared a cash dividend for stockholders of record on December 22, 2016. The dividend declaration was $50,000. (Use a separate Dividends Payable account for the common stockholders and the preferred stockholders.)

Dec. 31, 2016 Paid the dividend.

GENERAL JOURNAL

Date Accounts Debits Credits

Dec. 1, 2016

Issued common stock

Dec. 5, 2016

Issued preferred stock

Dec. 11, 2016

Issued common stock

Dec. 14, 2016

Declared dividend

Dec. 31, 2016

Paid Dividends

HINT: This balance sheet is already formatted. If you add/delete columns or rows, or change the already-prepared formulas, you are making an error. All cells with a bold border require an input.

WeatherStrip Inc.

Balance Sheet (Stockholder's Equity only)

December 31, 2016

Capital Stock:

$- 0

Additional Paid-in Capital:

$- 0

Total Paid-In Capital $- 0

Retained Earnings

Total Stockholder's Equity $- 0