Chapter 15 Problem Equity transactions Foley Corporation has the followine capital structure at the beginning of the year: $ 300,000 NIE 4% Preferred stock, 550 par value, 20,000 shares authorized 6,000 shares issued and outstanding Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par Total pald-in capital Retained earnings Total stockholders' equity 400,000 110,000 810,000 440.000 $1.250.000 Instructions (a) Record the following transactions which occurred consecutively (show all calculations) 1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts. Dividends declared 90 poo Dividends payable on common stock 75,000 Dividends payable on preferred stock 15,000 2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share. Stock diviclend (6OOO *227 132,000 common Stock dividend distribuctable 60,000 paid in capital in excess of par 72,000 3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion (b) On the following page, construct the stockholders' equity section incorporating all the above information