Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 860,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $20.00 per share. 240,000 shares of $100 par value, 8.00% cumulative, preferred stock were authorized; 64,000 shares were issued on January 1, 2019, at $130 per share. Net income for the years ended December 31, 2019 and 2020 was $1,320,000 and $2,470,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,500,000, payable on February 12, 2021, to holders of record as of January 19, 2021. Problem 8-23 (Algo)

Part a - Horizontal Model Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)