Tree Comfort Specialists, Inc., reported the following stockholders' equity on its balance sheet at April 30, 2012.

Question:

TREE COMFORT SPECIALISTS, INC. Stockholders' Equity April 30, 2012 Paid-in Capital: $ 1,200,000 Preferred stock, 6%, ? p

Requirements
1. Identify the different issues of stock that Tree has outstanding.
2. What is the par value per share of Tree's preferred stock?
3. Make two summary journal entries to record issuance of all the Tree stock for cash. Explanations are not required.
4. No preferred dividends are in arrears. Journalize the declaration of a $300,000 dividend at April 30, 2012. Use separate Dividends payable accounts for preferred and common. An explanation is notrequired.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...