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Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 490,000 shares of $10 par common stock and 75,000 shares of

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Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 490,000 shares of $10 par common stock and 75,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $30 per share. The following stock transactions pertain to Eastport inc: 1. Issued 16,000 shares of common stock for $15 per share. 2. Issued 14,000 shares of the class A preferred stock for $35 per share. 3. Issued 45,000 shares of common stock for $18 per share. Required Prepare the stockholders' equity section of the balance sheet immediately after these transactions have been recognized. EASTPORT INC. Balance Sheet (partial) For the Year Ended Year 1 Stockholders' Equity Total Pald-In Capital Total stockholders' equity Weaver Corporation had the following stock issued and outstanding at January 1, Year 2: 1. 65,000 shares of $12 par common stock. 2. 5,000 shares of $70 par, 6 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 5,000 shares of preferred stock and a $2 per share dividend for the common shareholders. The dividend will be paid on July 1 to the shareholders of record on June 20. Required Determine the total amount of dividend to be paid to the preferred shareholders and common shareholders. Preferred stock Common stock Total dividend On May 1, Year 3, Love Corporation declared a $97,600 cash dividend to be paid on May 31 to shareholders of record on May 15. Required Record the events occurring on May 1 and May 31 in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA). Investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account balances with a minus sign.) Balance Sheet Common Liabilities Stock LOVE CORPORATION Horizontal Statements Model Income Statement Retained Earnings Revenue Expenso Date Statement of Cash Flow Assets + Net Income + May 1 May 31

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