QUESTION 1 The Board of Directors declared a cash dividend of $60,000 payable to shareholders of record on June 15 (Use retained earningss method) Debit Cash 60,000 Credit Dividends Payable 50,000 Credit Retained Earnings 10,000 Debit Retained Earnings 60,000 Credit Cash 60,000 Debit Dividends Payable 60,000 Credit Retained Earnings 60,000 Debit Retained Earnings 60,000 Credit Dividends Payable 60,000 QUESTION 2 Issued 12,000 shares of $5 par value preferred stock at $8.00 per share Debit Preferred Stock 96,000 Credit Cash 96,000 Debit Cash 96,000 Credit Preferred Stock 96,000 Debit Cash 96,000 Credit Preferred Stock 60,000 Credit APIC-P/S 36,000 Debit Preferred Stock 60,000 Debit APIC-P/S 36,000 Credit Cash 96,000 QUESTION 3 Issued 5,000 shares of $10 par value common stock for $15.00 per share Debit Cash 75,000 Credit Common Stock 75,000 Debit Cash 75,000 Credit Common Stock 50,000 25,000 Credit APIC-C/S Debit Cash 75,000 Credit Preferred Stock 50,000 Debit Common Stock 50,000 Debit APIC-C/S 25,000 Credit Cash 75,000 QUESTION 4 Issued 20,000 shares of $10 par value common stock in exchange for a building with a Fair market value of $250,000. Debit Common Stock 200,000 Debit APIC-C/S 50,000 Credit Building 250,000 Debit Building 250,000 Credit Common Stock 250,000 Debit Common Stock 200,000 Credit Building 200,000 Debit Building 250,000 Credit Common Stock 200,000 Credit APIC-C/S 50,000