Requirements

1.

Record the transactions in Halborn's Halborn's general journal.

Halborn's stockholders' equity section of the balance sheet as of December31, 2016. Assume that Halborn Halborn was authorized to issue 1,000 shares of preferred stock and 300,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December31, 2016 is $2,040,000.

Requirement 1. Record the transactions in Halborn's

Halborn's general journal. (Record debitsfirst, then credits. Select the explanation on the last line of the journal entry table. If no entry isrequired, select"No entryrequired" on the first line of the Accounts and Explanation column and leave the remaining cellsblank.)

Jan.16: Declared a cash dividend on the 5%, $105 par noncumulative preferred stock (900 sharesoutstanding). Declared a $0.40 per share dividend on the 80,000 shares of $6 value common stock outstanding. The date of record is January31, and the payment date is February 15.

Date

Accounts and Explanation

Debit

Credit

Jan. 16

Cash Dividends

Dividends PayablePreferred

Dividends PayableCommon

Declared a cash dividend.