Equity

The stockholders equity of Watson is given below at December 31, 2017.

6% Cumulative Preferred stock, $50 par, 100,000 shares authorized XXX issued	4,000,000
Common Stock, $2 par 500,000 shares authorized, 230,000 shares issued.	460,000
Paid in capital in excess of par
On Common Stock	4,370,000
On Treasury Stock	3,000
On Common Stock Retirement	25,000
Total Paid in Capital	8,858,000
Retained Earnings	2,790,000
Subtotal	11,648,000
Less 10,000 shares of Treasury Stock at Cost	-230,000
Total Stockholders' Equity	11,418,000
Note; One Years' dividends are in arrears on the preferred stock

Make the following entries or answer the following questions. Be sure to keep track of the number of shares.

How many shares of Preferred stock have been issued?

What was the average issuance price of the common stock?

On February 1, 4,000 shares of treasury stock were sold at 19 per share. Record their reissuance.

On March 15, 3,000 shares of treasury stock were retired. Assuming these shares were originally issued at $22 per share, record their retirement

On April 10, the remaining treasury shares were reissued at $25 per share Record their reissuance

On May 1, the board of directors determined that they had sufficient funds to pay out $650,000 in cash dividends to common and preferred shareholders

How much will be paid out to the common shareholders?

Record the declaration of the dividends on May 1.

On July 15, 10,000 shares of Common Stock and 2,000 shares of Preferred Stock were issued for a lump sum of $400,000. The market price of the common was $30 per share and the market price of the preferred was $54 on that date.

Record the issuance of these shares.

On December 31st the company declared a 5% stock dividend when the market price of the stock was $33 per share. The dividend will be distributed on January 15th. Record the declaration.