Blossom Company reported the following amounts in the stockholders equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (98,500 shares authorized, 19,700 shares issued) 98,500 Additional paid-in capital 135,000 Retained earnings 479,000 Total $912,500 During 2020, Blossom took part in the following transactions concerning stockholders equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,600 shares of its own outstanding common stock for $43 per share. Blossom uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 530 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.

Question 2 Blossom Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (98,500 shares authorized, 19,700 shares issued) 98,500 Additional paid-in capital 135,000 Retained earnings 479,000 Total $912,500 During 2020, Blossom took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,600 shares of its own outstanding common stock for $43 per share. Blossom uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 530 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021. (a) Your answer is correct. Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. Dividends Payable - Preferred 20000 Dividends Payable - Common 39400 Cash 59400 2. Treasury Stock 68800 Cash 68800 3. Land 36200 Treasury Stock 34400 Paid-in Capital from Treasury Stock 1800 4. Cash 55650 Preferred Stock 53000 Paid-in Capital in Excess of Par - Preferred Stock 2650 5. Retained Earnings 88830 Common Stock Dividend Distributable 9450 Paid-in Capital in Excess of Par - Common Stock 79380 6. Common Stock Dividend Distributable 9450 Common Stock 9450 7. Retained Earnings 66880 Dividends Payable - Preferred 25300 Dividends Payable - Common 41580 Prepare the December 31, 2020, stockholders' equity section. Assume 2020 net income was $316,000. (Enter account name only.Do not provide any descriptive information.) BLOSSOM COMPANY Stockholders' Equity December 31, 2020 Capital Stock Preferred Stock 253000 Common Stock 107950 Total Capital Stock 360950 Additional Paid-in Capital X | Total Paid-in Capital X Retained Earnings X Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity