Using Lucas expertise at crafting incomprehensible legalese documents, your group writes and agrees upon a corporate charter. You also unanimously vote to authorize 1,000,000,000 (yes, thats billion) shares of $0.10 par value common stock and 1,000 shares of non-voting, 5% cumulative preferred stock with a $100 par value.

Required: Journalize the following transactions:

1)

At the end of the Month Mr.Speakers declares a $10,000 dividend payable 2/1/2016. Record the journal entry for 1/31/2016. On 2/1/2016, how much will each owner receive?

You: 1,000 common stock shares

Luca: 1,000 common stock shares

Avelia: 3,000 common stock shares and 10 preferred stock shares

Mollena: 1,000 common stock shares

Corrine: 4,000 common stock shares

2)

On 1/31/2016 Mr.Speakers also declares a 5% common stock dividend. The team members estimate the fair value of the stock at $12 per share.