Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you please show all work Problem 2a 2a. . Cash Corporation began operations on January 1. The following transactions relating to stockholders' equity occurred
can you please show all work
Problem 2a 2a. . Cash Corporation began operations on January 1. The following transactions relating to stockholders' equity occurred in the first two years of operations: Year 1: Jan. 1 Authorized the issuance of 2 million shares of $2 par value common stock and 300,000 shares of $100 par value, 10% non- cumulative preferred stock. Jan. 2 Issued 100,000 shares of common stock for $12 cash per share Jan3. Issued 5,000 shares of common stock in exchange for office equipment of $43,000. Jan3. Issued 30,000 shares of preferred stock for $125 share. Jan. 4 Issued 1000 shares of common stock for legal fees of $18,700. Fees were incurred in the organization of the company. Jan 5. Issued 25,000 shares of preferred stock for $130 cash per share. Year 2: Jan 1: Issued 200,000 shares of common stock for $11 cash per share Jan 1: Issued 10,000 shares of preferred stock for $140 per share Prepare the journal entries for the above transactions. 2b. Prepare a table showing dividend allocation for both years assuming Cash Corporation declares the following cash dividends: Year 1: $500,000; Year: 2$ 1,300,000 Yr 1 Preferred Common Yr 2 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started