LO 11-3 Exercise 11-7B Cash dividends for preferred and common shareholders ALR Corporation had the following stock issued and outstanding at January 1, Year I. 1.200,000 shares of $10 par common stock. 2. 8,000 shares of $100 par, 4 percent, noncumulative preferred stock. On May 10, ALR Corporation declared the annual cash dividend on its 8,000 shares of preferred stock and a $0.50 per share dividend for the common shareholders. The dividends will be paid on June 15 to the shareholders of record on May 30. Required Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. Computation of Dividends to Be Paid: LO 114 Exercise 11-8B Effect of issuing common stock on the balance sheet Newly formed Irwin Services Corporation has 100.000 shares of $10 par common stock authorized On March 1 Year 1, Irwin Services issued 20,000 shares of the stock for $12 per share. On May 2, the company issued an additional 30,000 shares for $15 per share. Irwin Services was not affected by other events during Year 1. Required 1. Record the transactions in a horizontal statements model like the following one. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA). Investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event. Balance Sheet Income Statement Assets - Llab. + Stk. Equity + PIC In Excess Statement of Cash Flows Cash Com. Stk. - Exp. - Net Inc. b. Determine the amount Irwin Services would report for common stock on the December 31, Year I. balance sheet. c. Determine the amount Irwin Services would report for paid in capital in excess of par d. What is the total amount of capital contributed by the owners e. What amount of total assets would Irwin Services report on the December 31, Year 1. balance sheet? Balance Sheet Event Assets = Liab + Stkholders' Equity Cash + C. Stk. + PIC Exc. Income Statement Rev. - Exp. = Net Inc. Stmt. of Cash Flow Common Stock: | Paid-In Capital in Excess of Par d. Total Paid-In Capital