QUESTION 5 Issued 7,000 shares of $10 par value common stock for $10.00 per share Debit Common Stock 70,000 Credit Cash 70,000 Debit Cash 70,000 Credit Common Stock 50,000 Credit APIC-C/S 20,000 Debit Cash 70,000 Credit Preferred Stock 70,000 o Debit Cash 70,000 Credit Common Stock 70,000 o QUESTION 6 Issued 6,000 shares of $10 par value common stock to the organizers of the business for legal services performed with a fair market value of $70,000. debit Common stock 60,000 debit APIC-C/S 10,000 credit legal expense 70,000 Debit Legal Expense 70,000 O Credit Common stock 70,000 Debit Common Stock 70,000 Credit Legal Expense 70,000 O O Debit Legal Expense 70,000 Credit Common stock 60,000 Credit APIC-C/S 70,000 QUESTION 8 Issued 25,000 shares of $5 par value preferred stock at $5.00 per share Debit Cash 125,000 o Credit Common Stock 125,000 Debit Cash 125,000 Credit Preferred Stock 120,000 Credit APIC-P/S 5,000 Debit Cash 125,000 Credit Preferred Stock 125,000 Debit Preferred Stock 125,000 Credit Cash 125,000 QUESTION 10 Dividends declared on May 31 in the amount of $60,000 are paid to the shareholders. Debit Dividends Payable 60,000 Credit Cash 60,000 Debit Retained Earnings 60,000 Credit Cash 60,000 Debit Dividends Payable 60,000 Credit Retained Earnings 60,000 Debit Cash 60,000 Credit Dividends Payable 60,000