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Comprehensive Stock Transaction Exercise Kevin James is the chief executive officer of Golden James, Inc, a manufacturing company that his father founded 25 years ago.

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Comprehensive Stock Transaction Exercise Kevin James is the chief executive officer of Golden James, Inc, a manufacturing company that his father founded 25 years ago. The company's fiscal year just ended on June 30, 2017, and Kevin is now considering what steps to take in the next fiscal year with regard to stockholders' equity. The current status of the company's stockholders' equity is as follows: Contributed capital Common stock, no par value, $6 stated value, 500 shares authorized, 125 shares issued and outstanding $750,000 Additional paid-in capital 410.000 Total contributed capital $1,160,000 Retained earnings 485,000 Total stockholders' equity $1,545,000 Among the questions Kevin is wrestling with are whether the company should declare a stock split whether it should issue preferred stock to raise capital, and whether it should pay cash dividends or use cash to buy back its own stock. The following transactions show how the company responded to these questions during the fiscal year that ended on June 30, 2017. a. The board of directors declared a 2-for-1 stock split b. The board of directors obtained authorization to issue 25,000 shares of 5100 par value, 6 percent noncumulative preferred stock, callable at $104. c. The company issued 6,000 shares of common stock for a building appraised at 548,000 d. It bought back 4,000 shares of its common stock for $32,000. e. It issued 10,000 shares of preferred stock for $100 per share. 1. It sold 2,500 shares of treasury stock for $17,500. B. It declared cash dividends of $6 per share on preferred stock and $0.20 per share on common stock h. It declared a 10 percent stock dividend on common stock to be distributed after the end of the fiscal year. The market value was $10 per share. 1. It closed net income for the year. $170,000 jIt closed the Dividends and Stock Dividends accounts to Retained Earnings Required 1. Using the data presented record the preceding transactions, if no transaction you must indicate when there is no entry

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