Question 5,6 and 7

Question 5,6 and 7

Larkspur Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. $180,000 Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued) Common stock, $5 par (103,500 shares authorized, 20,700 shares issued) 103,500 Additional paid-in capital 114,000 Retained earnings 423,000 Total $820,500 During 2020, Larkspur took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. 3. Purchased 1,500 shares of its own outstanding common stock for $43 per share. Larkspur uses the cost method. Reissued 600 treasury shares for land valued at $27,100. Issued 550 shares of preferred stock at $105 per share. 4. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $41 per share. Issued the stock dividend. 6. 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021