&O begins operations on January 1, 2022.

On January 1, 2022, B&O issues 90,000 shares of $1 par value common stock for $120,000.

Prepare the journal entry to record the issuance of common stock.

Dr:

CR:

CR:

On January 1, 2022 B&O issues 1,000 shares of $100 par value 2% cumulative Class A preferred stock for $150,000.

Prepare the journal entry to record the issuance of Class A preferred stock.

DR:

CR:

CR:

On January 1, 2022, B&O issues 100 shares of $10 par value 5% noncumulative Class B preferred stock for $1,100.

Prepare the journal entry to record the issuance for Class B preferred stock.

DR:

CR:

CR:

B&O does not declare a dividend in 2022.

B&O reports Net Income of $10,000 in 2022.

B&0 reports Net Income of $80,000 in 2023.

On December 1, 2023, B&O declares a $8,000 dividend.

How much of the dividend will be paid to Class A cumulative preferred stock shareholders for 2023?

How much of the dividend will be paid to Class B preferred stock shareholders?

How much of the dividend will be paid to Common shareholders?

Prepare the journal entry as of the Date of Declaration.

DR:

CR: Dividends Payable

Prepare the Statement of Shareholders' Equity as of December 31, 2023

B&O Statement of Shareholders' Equity as of December 31, 2023

Account	Amount
Common Stock
Preferred Stock
APIC - Common
APIC - Preferred
Retained Earnings
Total Shareholders' Equity	353,100