Requirement 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has

common stock

preferred stock

preferred stock and common stock

preferred stock and treasury stock

outstanding.

Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock?

The par value per share of preferred stock is

Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by recording the issuance of the preferred stock.

Date			Accounts	Debit	Credit

Next, record the issuance of the common stock.

Date			Accounts	Debit	Credit

Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $400,000 dividend at June 30, 2024, and the payment of the dividend on July 20,

2024.

Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by recording the declaration of a $400,000 dividend at June 30, 2024.

Date			Accounts	Debit	Credit
Jun. 30

Record the payment of the dividend on July 20,

2024.

Date			Accounts	Debit	Credit
Jul. 20

Stockholders' Equity
Paid-In Capital:
Preferred Stock5%, ? Par Value; 750,000 shares authorized, 320,000 shares issued and outstanding	$1,600,000
Common Stock$1 Par Value; 9,000,000 shares authorized, 1,350,000 shares issued and outstanding	1,350,000
Paid-In Capital in Excess of ParCommon	3,000,000
Total Paid-In Capital	5,950,000
Retained Earnings	12,300,000
Total Stockholders' Equity	$18,250,000