Saved

$!$

Required information

$[$The following information applies to the questions displayed below.$]$

Homestead Oil Corporation was incorporated on January $1,2022,$ and issued the following stock for cash:

$770,000$ shares of no$-$par common stock were authorized; $150,000$ shares were issued on January $1,2022,$ at $$17\mathrm{.}00$ per share.

$240,000$ shares of $$110$ par value, $8\mathrm{.}00\%$ cumulative, preferred stock were authorized; $58,000$ shares were issued on January $1,2022,$ at $$140$ per share.

Net income for the years ended December $31,2022$ and $2023$ was $$1,340,000$ and $$2,550,000,$ respectively.

No dividends were declared or paid during $2022.$ However, on December $27,2023,$ the board of directors of

Homestead declared dividends of $$1,730,000,$ payable on February $11,2024,$ to holders of record as of January $16,2024.$

Prepare the journal entries to record each of the below transactions.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

The issuance of common stock and preferred stock on January $1,2022.$

The declaration of dividends on December $27,2023.$

The payment of dividends on February $11,2024.$