1. Issued 50% shares of class A common stock. Stock has par value of $45.00 per share and was issued at $75.00 per share.
2. Issued 50% shares of no-par class B stock
3. Issued 25% shares of preferred stock at par value.
4. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00.
5. Earned Net income $1,400,000.00.
6. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders

1. Prepare the journal entries with narrations to record the following:

The issuances of stock

Close out net income to retained earnings

Dividend declared

Close out dividend to retained earnings

2. Prepare the companys Stockholders equity section of the balance sheet at December 31, 2020.

The following information must be clearly stated/shown:

information on par or par values for all classes of shares which must be shown separately.

the number of shares authorized and issued where necessary.

the sub total for the total paid in capital.

Retained earnings.

total stockholders equity.