uvidend declared on June 18 Nared the annual cash dividend on the preferre per share on the common stock, payable on Janua December 28. per share hates of common stock. The end on the preferred stock and a cash dividend of 10 Stock. payable on January 20 to stockholders of record on Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of retained earnings. The net income for the year Stockholders' Equity Transactions. Journal Entries, and T-Accounts of Black Corporation at January 1 follows: Journal Entries, and T-Accounts The stockholders' equity LO- ......... $ 500,000 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding .... Common stock, $1 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock. Paid-in capital in excess of par value-Common stock .... Retained earnings Total Stockholders' Equity .......... 40,000 200,000 800,000 625,000 $2,165,000 Cambridge Business r value of the common 558 e (the book value of the bond converted to 110 shares of dollars. Round up.) 000 in exchange for 300 sharest Chapter 11 Stockholders' Equity The following transactions, among others, occurred during the year: Jan. 1 Announced a 4-for-1 common stock split, reducing the par value to $0.25 per share. 000 face value of convertible bonds payable (the book v bonds was $83.000) to common stock. Each $1,000 bond converter common stock. (Record common stock entry in whole dollars. Round June | Acquired equipment with a fair market value of $90,000 in exchange fo preferred stock Sept. 1 Acquired 15,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 5,000 shares of common stock at $22 cash per share. Dec. 28 Sold 1,000 treasury shares at $23 per share. 31 Closed net income of $145,000, to the Retained Earnings account. Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the years the January 1 balances. b. Prepare journal entries for the given transactions and post them to the T-accounts additional T-accounts needed). Do not prepare the journal entry for the Dec. 31 post the appropriate amount to the Retained Earnings T-account. Determine u