Stock Transactions 3. Acme Company was incorporated this year has 5,000 shares of 4% Preferred Stock $100 par value authorized and 10,000 shares of Common Stock $2 par value authorized. Prepare journal entries for the following transactions. 1. Issued 200 shares of common stock for $10 per share. 2. Issued 500 shares of common stock in exchange for equipment valued at $4,700. Issued 300 shares to the company's attorney for legal services valued at $3,500 related to preparing the company's charter Issued 1,000 shares of preferred stock at par. 5. Declared the required annual dividend on preferred stock and a $.50 per share dividend on common stock. 6. Record date for the dividend. 7. Payment date for the dividend, Prepare the Stockholders' Equity section of the Balance Sheet to reflect the above transactions. Assume the company had net Income for the year of $80,000. ** Use method 2 found on page 646 *Hint: you must do a Statement of Retained Earnings (pg 647) before you can do the Stockholders' Equity section of the Balance Sheet. Stock Transactions 3. Acme Company was incorporated this year has 5,000 shares of 4% Preferred Stock $100 par value authorized and 10,000 shares of Common Stock $2 par value authorized. Prepare journal entries for the following transactions. 1. Issued 200 shares of common stock for $10 per share. 2. Issued 500 shares of common stock in exchange for equipment valued at $4,700. Issued 300 shares to the company's attorney for legal services valued at $3,500 related to preparing the company's charter Issued 1,000 shares of preferred stock at par. 5. Declared the required annual dividend on preferred stock and a $.50 per share dividend on common stock. 6. Record date for the dividend. 7. Payment date for the dividend, Prepare the Stockholders' Equity section of the Balance Sheet to reflect the above transactions. Assume the company had net Income for the year of $80,000. ** Use method 2 found on page 646 *Hint: you must do a Statement of Retained Earnings (pg 647) before you can do the Stockholders' Equity section of the Balance Sheet