I have attached a document to be completed by tomorrow morning. It is a 2 question assignment. Show calculations.

ACTP 5008 Worksheet 2 Shareholders' Equity Problem 1 Watson Company is a publicly held company whose shares are traded in the overthe counter market. The stockholders' equity accounts at December 31, 2014, were as follows: Preferred stock, $100 par value, 6% cumulative, 5,000 shares authorized, 2,000 shares issued and outstanding Common stock, $1 par, 150,000 shares authorized, 100,000 shares issued and outstanding Paid in capital in excess of par Retained earnings Total stockholders' equity $200,000 100,000 800,000 1,586,000 2,686,000 Transactions during 2015 were as follows: A. February 1: Issued 13,000 shares of common stock to Harper Company in exchange for land. On the date it was issued, the stock had a market price of $11 per share. The land had a carrying value on Harper's books of $135,000 and an assessed value for tax purposes of $90,000. B. March 1: Purchased 5,000 shares of common stock to be held as treasury stock for $14 per share. C. May 1: Declared a property dividend of securities held by Watson to common stockholders. The securities had a carrying value of $600,000. The fair value of the securities was $720,000 on the date of declaration, $758,000 on the date of record. And $736,000 on the date of distribution. D. October 1: Reissued 2,000 shares of Treasury stock at $16 per share. E. November 4: Declared the annual cash dividend to preferred stockholders. The divided was paid on January 5, 2016. F. November 4: Declared a cash dividend of $1.50 per share to common stockholders of record November 15. The cash divided was paid on January 5, 2016. G. Net income for 2015 was $838,000. Required: 1. Record the necessary journal entries for 2015. 2. Prepare the stockholders' equity section of Watson Company's equity section of the balance sheet for December 31, 2015. Problem 2 Jolie Corp wishes to declare and distribute a divided on December 31, 2015. The outstanding capital stock at December 31, 2015, consists of 30,000 shares of 5 percent preferred stock, par value $10 per share, and 200,000 shares of common stock, par value $1 per share. Dividends have not been paid for two years prior to the current year. Required: 1. Determine the amount of the dividends that should be paid to the preferred and common stockholders if the preferred stock is cumulative and nonparticipating and the total amount available for dividends is $45,000, $75,000 and $125,000. 2. Determine the amount of dividends that should be paid to the preferred and common stockholders if the preferred stock is cumulative and participating and the total amount available for dividends is a) $45,000, b) $75,000 and c) $125,000