Cheyenne Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 9%, $100 par (10,000 shares authorized, 1,900 shares issued) Common stock, $5 par (98,000 shares authorized, 19,600 shares issued) Additional paid-in capital Retained earnings Total $190,000 98,000 117,000 470,000 $875,000 2. During 2020, Cheyenne took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. Purchased 1,700 shares of its own outstanding common stock for $37 per share. Cheyenne uses the cost method. Reissued 700 treasury shares for land valued at $29,500. Issued 450 shares of preferred stock at $104 per share. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. Issued the stock dividend. Declared the annual 2020 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021. 3. 4. 5. 6. 7. (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 for the amounts.) Debit Credit No. Account Titles and Explanation Dividends Payable - Preferred 1. 17100 Dividends Payable - Common 39200 Cash 56300 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 for the amounts.) Debit Credit No. Account Titles and Explanation 1. Dividends Payable - Preferred 1 17100 Dividends Payable - Common 39200 Cash 56300 2. Treasury Stock 62900 Cash 62900 3. Land 29500 Treasury Stock 25900 Paid-in Capital from Treasury Stock 3600 4. Cash 46800 Preferred Stock 45000 Paid-in Capital in Excess of Par - Preferred Stock 1800 5. Retained Earnings 87,420 Common Stock Dividend Distributable 9,300 Paid-in Capital in Excess of Par - Common Stock 78,120 6. 9,300 Common Stock Dividend Distributable Common Stock 9,300 7. 62,070 Retained Earnings Dividends Payable - Preferred 21150 Dividends Payable - Common 40,920 Textbookand Media Your answer is partially correct. Prepare the December 31, 2020, stockholders' equity section. Assume 2020 net income was $341,000. (Enter account name only.Do not provide any descriptive information.) CHEYENNE COMPANY Stockholders' Equity December 31, 2020 Stockholders' Equity Preferred Stock $ 2,35,000 Common Stock 1,07,300 Total Capital Stock 3,42,300 Additional Paid-in Capital 2,00,520 5,42,820 Total Paid-in Capital Retained Earnings 6,61,510 Total Paid-in Capital and Retained Earnings 12.04,330 Less : Treasury Stock -37,000 Total Stockholders' Equity TA 11,67,330 eTextbook and Media List of Accounts Save for Later Attempts: 1 of 10 used Submit