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(Solved by Expert Tutors) Equity transactions.Foley Corporation has the following capital structur


Preferred stock, $50 par value, 20,000 shares authorized, 6,000 shares issued and outstanding$ 300,000Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding400,000Paid-in capital in excess of par 110,000Total paid-in capital810,000Retained earnings 440,000Total stockholders' equity$1,250,000Instructions(a)Record the following transactions which occurred consecutively (show all calculations).1.A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2.A 10% common stock dividend was declared. The average market value of the common stock is $18 a share.3.Assume that net income for the year was $150,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.(b)Construct the stockholders' equity section incorporating all the above information.

 


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Apr 19, 2020

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