The stockholders equity section of Doc Corporations balance as Paid-in Capital

Preferred stock, 9%,$100 par value, non-cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding............................................................

Common stock, $10 par value, 500,000 shares Authorized, 90,000 shares issued and

90,000 shares outstanding............................................... Paid in capital in excess of par- common stock.......................

Total Paid-in Capital Retained earnings.........................................................

Total Stockholders Equity The following transactions affecting stockholders equity occurred during the year:

of January 1, 2019 is presented below:

$ 500,000

900,000

200,000 $ 1,600,000 900,000 $ 2,500,000

Jan 15 Mar 1 Apr15 May 1 Oct 1

Declared the annual cash dividend on the preferred stock, payable April 15.

Dec 31 Dec 31 Instructions:

Declared a $2 per share cash dividend on the common stock outstanding payable April 15.

Paid the cash dividends declared on January 15 and March 1.

Issued 10,000 shares of common stock for $20 per share.

Declared and issued a 10% stock dividend on the common stock outstanding. The market value of the common stock was $25.

Net Income for the year was $700,000. Closed the income summary account. Close the dividend accounts.

1. Prepare journal entries for the above .

2. Post to the appropriate ledger accounts

3. Prepare a stockholder equity section for December 31, 2019