Homework 13 Equity On May 1, Covid Issues 1,000 shares of $2 par value common stock for $3 per share. What is Covid's journal entry on May 1? DR CR CR On May 10, Covid issues 500 shares of $2 par value common stock for $4/share. What is Covid's journal entry on May 10? DR CR CR As of May 31, Covid records Net Income of $5,000. Assuming Covid has no other equity transactions prior to May, Prepare Covid's Statement of Shareholder's Equity as of May 31. Homework 13 Equity On June 1, Covid issues 1,000 shares of $10 par value 5% cumulative preferred stock for 13,000 cash. What is Covid's journal entry on June 1 to record the issuance? DR CR CR Covid records $20,000 of Net Income in June and declares and pays a $5,000 cash dividend. Combine Covid's May activity (prior sheet) with June activity to create Covid's Statement of Shareholders' Equity as of June 1 Homework 13 Equity Corona Inc has the following shares outstanding 5,000 shares $1 par value common stock 1,000 shares $10 par value 4% cumulative preferred stock. In their first year of operations, Corona declares a $100 dividend. How much of the dividend will be paid to Preferred? How much of the dividend will be paid to Common? How much, if any, dividend must Preferred be paid in future periods before common can receive a dividend? What is the journal entry on the Date of Declaration? What is the journal entry on the Date of Record? What is the journal entry on the Date of Payment? Homework 13 Equity Corona Inc has the following shares outstanding 5,000 shares $1 par value common stock 1,000 shares $10 par value 4% non-cumulative preferred stock. In their first year of operations, Corona declares a $100 dividend. How much of the dividend will be paid to Preferred? How much of the dividend will be paid to Common? How much, if any, dividend must Preferred be paid in future periods before common can receive a dividend? Homework 13 Equity FaceMask Inc. has the following shares authorized, issued and outstanding as of May 31 10,000 shares of $1 par value common stock 5,000 shares of $100 par value 6% cumulative Preferred Stock In the first year of operations, FaceMask Inc does not declare a dividend. In the second year of operations, Face Mask Inc declares a $70,000 dividend How much of the year 2 dividend will be paid to Preferred? How much of the year 2 dividend will be paid to Common? Homework 13 Equity Face Mask Inc. has the following shares authorized, issued and outstanding as of May 31 10,000 shares of $1 par value common stock 5,000 shares of $100 par value 6% non-cumulative Preferred Stock In the first year of operations, Face Mask Inc. does not declare a dividend. In the second year of operations, Face Mask Inc declares a $70,000 dividend How much of the year 2 dividend will be paid to Preferred? How much of the year 2 dividend will be paid to Common? Homework 13 Equity Quarantine Inc. begins operations on June 1. On June 1, Quarantine issues 10,000 shares of $1 par value stock for $35,000 Prepare the Journal entry to record the issuance of Common Stock On June 1, Quarantine Issues 1,000 shares of $SO par value 7% cumulative Preferred Stock for $60,000. Prepare the journal entry to record the issuance of Preferred Stock On May 31 of the following year, Quarantine Inc. Reports Net Income of $100,000 and declares a dividend of $10,000, How much of the dividend will be paid to Preferred? How much of the dividend will be paid to commen? Prepare the Journal entry as of the date of declaration Prepare the Journal entry as of the date of record Perpare the journal entry as of the date of payment Prepare Quarantine's Statement of Shareholders' Equity as of May 31