Exercise 10-5 Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3, 10-5)

Italian Stallion has the following transactions during the year related to stockholders equity.

February 1 Issues 5,200 shares of no-par common stock for $14 per share.

May 15 Issues 500 shares of $10 par value, 8.5% preferred stock for $11 per share.

October 1 Declares a cash dividend of $0.85 per share to all stockholders of record (both common and preferred) on October 15.

October 15 Date of record.

October 31 Pays the cash dividend declared on October 1. Required: Record each of these transactions

Required:

Record each of these transactions.