Chapter 13 In-Class Exercises 1. At the beginning of 2011, Austin Corporation's stockholders' equity consisted of the following: Common Stock, $1 par value, 1,000,000 shares authorized, 300,000 shares issued....... $300,000 Paid-In Capital in Excess of Par Value Common Stock............ 390,000 Retained Earnings ....... 230,000 Total stockholders' equity ............ $920,000 Required: A. Create any necessary journal entries and post to the t-accounts the transactions below: a. On October 1, 2011 the firm sells 100,000 additional shares of common stock at $10 per share cash. b. On November 23, 2011 the Board of Directors votes to approve a $0.10 per share cash dividend on the common stock. C. December 20, 2011 is the date of record for the dividend approved on November 23, 2011. d. On December 31, 2011 the dividend is paid to the stockholders of record on December 20, 2011. e. On December 31, 2011 revenues and expenses are closed to the Income Summary account resulting in a credit balance of $50,000. Create a journal entry to close the Income Summary account to Retained Earnings. Chart of Accounts Cash Dividend Payable Common Stock Paid-In Capital in Excess of Par Value Common Stock Retained Earnings Income Summary