Problem 1. (30 points). Kingdon Corporation has the following stockholders' equity section at 12/31/20: Kingdon Corporation Stockholders' Equity Section 12/31/2020 Capital Stock: Preferred Stock, $10 par, 8% cumulative, 180,000 shares authorized, 100,000 shares issued and outstanding Common Stock, $20 par, 300,000 share authorized, 120,000 shares issued and outstanding Total Capital Stock Additional Paid-in Capital: Paid-in capital in excess of par-Preferred Paid-in capital in excess of par-Common Retained Earnings Total Stockholders' Equity $ 380,000 3,400,000 $ 1,000,000 . Payment date. 1. Net income of $475,000 is earned for 2021. 2,400,000 3,400,000 3,780,000 7,180,000 2,450,000 $ 9,630,000 e following transactions occurred during 2021: 1/2/21. 20,000 shares of preferred stock was issued for $40 a share. 2/15/21. The board declared a 10% common stock dividend, distributable on 3/22/21. The fair market value of the shares on this date was $50. 2/21. The stock dividend is distributed. /21. The company reacquired 20,000 shares of common stock and held in the treas a share. 1. The company re-issued 5,000 shares of treasury stock for $50 a share. 21. The company re-issued 8,000 shares of treasury stock for $38 a share. 21. Kingdon Corporation declares a total cash dividend of $50,000, of which $1 red shares, with the remainder allocated to common shares. Record the declara nd, with a 10/15/21 record date, and 11/2/21 payment date. Be sure to record t nd and common dividend (if any) in separate liability accounts. 21. Record date.

Problem 1. 30 points). Kingdon Corporation has whu Ln 12/31/20 : e following transactions occurred during 2021: 121. 20,000 shares of preferred stock was issued for $40 a share. 5/21. The board declared a 10% common stock dividend, distributable on 3/22/21. I ket value of the shares on this date was $50. /21. The stock dividend is distributed. 1/21. The company reacquired 20,000 shares of common stock and held in the trea: a share. 1. The company re-issued 5,000 shares of treasury stock for $50 a share. 21. The company re-issued 8,000 shares of treasury stock for $38 a share. 1. Kingdon Corporation declares a total cash dividend of $50,000, of which $1 red shares, with the remainder allocated to common shares. Record the declara nd, with a 10/15/21 record date, and 11/2/21 payment date. Be sure to record t hd and common dividend (if any) in separate liability accounts. 1. Record date. Payment date. 1. Net income of $475,000 is earned for 2021