On May 20, Lawrence Corporation issued for cash 12,000 shares of no-par common stock at $25. On June 15, Lawrence issued at par 1,000 shares of 4%, $50 par preferred stock for cash. On July 30, Lawrence issued for cash 15,000 shares of 6%, $50 par preferred stock at $55.

Prepare journal entries to record the May 20, June 15, and July 30 transactions.

• Casey, Inc. has 10,000 shares of $10 par value common stock outstanding. Prepare journal entries to record the following:

(a)	Casey purchased 1,000 shares of treasury stock at $11.
(b)	Casey sold 500 shares of treasury stock at $15.
(c)	Casey purchased equipment for $75,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the equipment.
(d)	Casey sold 500 shares of treasury stock at $11.

At January 1, 2012, Lance Link Corporation had 100,000 shares of $1 par common stock and 1,000 shares of $100 par, 6%, cumulative preferred stock outstanding.

Express did not pay dividends in 2012 or 2013. In December 2014, the board of directors declared a $45,000 cash dividend to be paid on January 31.

Required:

Compute the total dividend to be paid to the preferred shareholders.

Compute the total dividend to be paid to the common shareholders

Show the December 31 journal entry to record the declaration of dividends.

• Prepare journal entries for the following selected transactions completed during the current fiscal year:

Jan. 3	The board of directors reduced the par of common shares from $100 to $20. Also, the board increased the number of outstanding shares to 400,000.
22	Declared a dividend of $2.00 per share on the outstanding shares of common stock.
Feb. 8	Paid the dividend declared on January 22.
Sep. 1	Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30).
Oct. 1	Issued the certificates for the common stock dividend declared on September 1.