Francesca and Sophia have decided to convert HHEC from a sole proprietorship to a corporation. During the year, HHEC Corp. issues common stock and pays dividends on that common stock. Sophia gives you a list of transactions to record the entries for the issuance of common stock and the payment of cash dividends. At the end of Year 2, Sophia and Francesca would like to know how much is in retained earnings HHEC Corp. and what the ending value of stockholders equity is.

Francesca and Sophia have decided to convert HHEC from a sole proprietorship to a corporation. During the year, HHEC Corp. issues common stock and pays dividends on that common stock. Sophia gives you a list of transactions to record the entries for the issuance of common stock and the payment of cash dividends. At the end of Year 2, Sophia and Francesca would like to know how much is in retained earnings HHEC Corp. and what the ending value of stockholders equity is.

Unit 1-Challenge 2-Task 1a Unit 1-Challenge 2-Task 1b Task 1: Francesca and Sophia have decided to convert HHEC from a sole proprietorship to a corporation. During the year, HHEC Corp. issues pays dividends on that common stock. Sophia gives you a list of transactions to record the entries for the issuance of common stock and the payment At the end of Year 2, Sopha and Francesca would like to know how much is in retained earnings HHEC Corp. and what the ending value of IS. HAPPY HOME January 1 Year 2 HHEC Corporation issues 10,000 shares of $100 par 10% preferred stock for $100 per sh B. On January 1, Year 2 HHEC Corporation issues 25, 000 shares of $20 par value common stock with a par value of $20, for $25 per shane C. On March 1, Year 2, HHEC declares a $1 cash dividend per share on its common stock, to stockholders of record on March 15, payable April 1 D On March 1, Year 2 HEC declared a 10% cash dividend on its preferred stock payable March 15. On June 1 Year 2, HHEC declared a 15% stock dividend to stock olders of ecord on June 15 distributable June 30 The market price of the stock was s per share. HHEC earned net income for Year 2 of $55,000 A.) Journalize the transactions B.) Prepare a Statement of Retained Earnings for the Year Ended December 31, Year 2. C.) Prepare a stockholders' equity section as of December 31, Year 2