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Hex Corp. is authorised to letu 6,000 shares of 4 cumulative.covertible preferred stock and 150,000 shares of common. At the most December 2019, it had

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Hex Corp. is authorised to letu 6,000 shares of 4 cumulative.covertible preferred stock and 150,000 shares of common. At the most December 2019, it had the following quity account balances: December 31, 2019 endine balances Preferred stock (1.200 shares kesund $ 120,000 Common Stock (35,000 shares issued) 350,000 Retained earnings 140,000 During 2020, the corporation had the following transactions which impacted shareholders equity. Required: Prepare the mquired journal entries for the following transactions. Feb 20 Acquired machinery valued at $140.000. The sellers of the machinery agreed to accept 13,500 shares of the comoration's common stock in full payment. Mar 07 Sold 400 additional shares of preferred stock for $40,000. Mar 20 Sold 4,000 additional shares of common stock for $40,000 May 03 Declared the annual cash dividend to be paid to the preferred shareholders. Also declared a $0.50 per share dividend to be paid to the common shareholders of record as of May 14. May 31 Paid the cash dividend declared on May 03 Declared a 7% stock dividend to be distributed to the common stockholders on May 03 Declared the annual cash dividend to be paid to the preferred shareholders. Also declared a $0.50 per share dividend to be paid to the common shareholders of record as of May 14. May 31 Paid the cash dividend declared on May 03. Declared a 7% stock dividend to be distributed to the common stockholders on July 10. The shares were selling on the market for $9 on this date of June 17 declaration July 10 Distributed the stock dividend previously declared. Common shares are selling for $9.25 per share today. Sept 14 The Board of Directors declared a 2 for 1 stock split of the common shares. Nov 30 The Board of Directors declared an additional $.10 per share dividend. The dividend will be paid to the common stockholders on January 3, of the next year. to the stockholders on record as of December 13, Dec 31 Closed the income summary account. The corporation had realized a net income of $100.000. Also closed the Cash Dividends account (if used)

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