T-Shirt Trends was organized as a publicly held corporation on September 1 and authorized to issue 10,000 shares of $100 par, $8 preferred stock, and 25,000 shares of $50 par common stock. 

Instructions

On the form provided in your working papers, record the following transactions on page 1 of the general journal.

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Transactions 2010 Sept. 1 Issued 4,000 shares of $8 preferred stock at $100 per share, Receipt 101. 12 Nov. 15 Issued 12,000 shares of common stock at $50 per share, Receipt 102. Received $52.50 per share for 2,500 shares of common stock issued, Receipt 215. Dec. 16 Received $5,000 for 50 shares of $8 preferred stock issued, Receipt 298. 2011 Mar. 24 Aug. 15 Issued 1,000 shares of common stock at $55 per share, Receipt 389. Declared a dividend of $32,400 on 4,050 shares of $8 preferred stock outstanding, payable on September 15 to stockholders of record on September 1, Memorandum 316. 15 Declared cash dividend of 25¢ per share on 15,500 shares of common stock outstanding, payable on September 30 to stockholders of record on September 1, Memorandum 317. Sept. 15 30 Dec. 31 Paid preferred stock dividend declared August 15, Check 1763. Paid common stock dividend declared August 15, Check 1802. Prepared the closing entries in the general journal to close Income Summary for the net income of $102,600 and to close the two Dividends accounts. Date