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Mountain Sports is looking to raise additional funding for their business to expand. They will be able to acquire cash in addition to a new

Mountain Sports is looking to raise additional funding for their business to expand. They will be able to acquire cash in addition to a new vehicle for their employees to use for travel to guided tours. Before the following transactions, their balance of common stock on April 1st, 2021 was $100,000 and included 100,000 shares of common stock issued and outstanding. There was no Paid-In Capital In Excess of Par-Common) and no preferred stock issued at this point. Cody Mountain Sports had the following transactions in April 2021:

Apr. 1

Issued 45,000 shares of $1 par value common stock for a total of $90,000.

Apr. 9

Issued 10,000 shares of 8%, $2 par value preferred stock in exchange for the truck with market value of $30,000.

Apr. 15

Declared total cash dividends of $5,000.

Apr. 19

Declared a 4% common stock dividend when the market value of the stock was $5.00 a share.

Apr. 30

Paid the cash dividends.

Apr. 30

Distributed the stock dividend.

Requirements:

  1. Journalize all transactions.
  2. Calculate the balance in Retained Earnings as of April 30th, 2021. Assume the balance on April 1st, 2021 was $3,400 and net income was $5,900.
  3. Prepare the stockholders equity section of the balance sheet as of April 30th, 2021.

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