• On January 1, 2017, Smith issued 1,500 shares of $20 par, 6% preferred stock for $33,000.
• On January 1, 2017, Smith also issued 2,000 shares of common stock for $46,000.
• Smith reacquired 500 shares of its common stock on July 1, 2017, for $60 per share.
• On December 31, 2017, Smith declared the annual cash dividend and a $2 per share
• dividend on the outstanding common stock, all payable on January 15, 2018.
• Smith estimates that uncollectible accounts receivable at year-end is $6,500.
• The building is being depreciated using the straight-line method over 30 years. The
• salvage value is $5,000.
• The equipment is being depreciated using the straight-line method over 10 years. The
• salvage value is $4,000.
• The unearned rent was collected on October 1, 2017. It was the receipt of 4 months' rent
• in advance (October 1, 2017 through January 31, 2018).
• The 10% bonds payable pay interest every January 1. The interest for the 12 months
• ended December 31, 2017, has not been paid or recorded.
• Declares a 10% stock dividend on December 15 when share price was $25
• Income tax is 30%