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(Dividend) Metro Company reported the following amounts in the stockholders' equity section of its balance sheet on 12/31/x1, first year of operations: Preferred stock, 10%,
(Dividend)
Metro Company reported the following amounts in the stockholders' equity section of its balance sheet on 12/31/x1, first year of operations:
Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000
Common stock, $5 par (100,000 shares authorized, 20,000 shares issued)100,000
APIC - Common125,000
Retained Earnings450,000
Total$875,000
During 20x2 and 20x3, Metro took part in the following transactions concerning stockholders' equity.
- Issued 500 shares of preferred stock at $106 per share.
- Declared a 10% stock dividend on common stock when the stock is selling for $39 per share.
Required: Prepare journal entries for these transactions.
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