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! Required information Problem 8 - 2 5 ( Algo ) Common and preferred stockissuances and dividends LO 8 - 1 , 8 - 2
Required information
Problem Algo Common and preferred stockissuances and dividends LO
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Homestead Oil Corporation was incorporated on January and issued the following stock for cash:
shares of nopar common stock were authorized; shares were issued on January at $ per share.
shares of $ par value, cumulative, preferred stock were authorized; shares were issued on January at $ per share.
Net income for the years ended December and was $ and $ respectively.
No dividends were declared or paid during However, on December the board of directors of Homestead declared dividends of $ payable on February to holders of record as of January
Problem Algo Part a Horizontal Model
Required:
Use the horizontal model for the issuance of common stock and preferred stock or January Indicate the financial statement effect.
Use the horizontal model for the declaration of dividends on December Indicate the financial statement effect.
Use the horizontal model for the payment of dividends on February Indicate the financial statement effect.
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Use the horizontal model for the issuance of common stock and preferred stock on Jan Note: Enter decreases with a minus sign to indicate a negative financial statement effe
tableBalance Sheet,,,AssetsLiabilities,
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