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Part I. Journal Entries and Calculations 1. Survivor Company was formed on January 1, 2010 by selling and issuing 20,000 shares of common stock at

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Part I. Journal Entries and Calculations 1. Survivor Company was formed on January 1, 2010 by selling and issuing 20,000 shares of common stock at $15 per share. On December 1, 2010, the company declared a cash dividend of $10,000 which will be paid in cash on January 15, 2011. Requirements: A. Prepare the journal entry to record the sale and issuance of the common stock on January 1, 2010 under each of the following independent assumptions: 1. The common stock has a par value of $10 per share. 2. The common stock was no par with a stated value of $5 per share. 3. The common stock was no par and no stated value. B. Prepare the journal entry to record the dividend declaration on December 1, 2010. C. Prepare the journal entry to record payment of the dividend on January 15, 2011. 2. On January 1, 2010, the accounts of Mac Corporation showed the following: Common stock, par SI, authorized 100,000 shares Capital in excess of par value ($2 per share) Retained carnings 60,000 140,000 During 2010, the following transactions occurred affecting stockholders' equity (in the order given): A B. C. D. Issued a 100% stock dividend when the market price was at $5 per share. Purchased treasury stock. 1,000 shares at a total cost of $8.000. Declared and paid cash dividends. S15.000 Net income for 2010, S25.000 Required: The stockholders' equity section of the balance sheet for the company must be prepared for the December 31, 2010 balance sheet. It is given below with certain amounts missing. Supply the missing amounts by entering them in the blanks. STOCKHOLDERS' EQUITY (1) (2) S Common stock, par SI authorized shares 100.000 shares issued Capital in excess of par value Total contributed capital Retained earnings Treasury stock, shares Total stockholders' equity (6)

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