Trane Comfort Specialists, Inc., reported the following stockholders' equity on its balance sheet at June \(30,2008\).

Requirements 

1. Identify the different issues of stock that Trane has outstanding.

2. What is the par value per share of Trane's preferred stock?

3. Make two summary journal entries to record issuance of all the Trane stock for cash. Explanations are not required.

4. No preferred dividends are in arrears. Journalize the declaration of a \(\$ 500,000\) dividend at June 30, 2008. Use separate Dividends Payable accounts for Preferred and Common. An explanation is not required.

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Paid-in capital: Stockholders' Equity Preferred stock, 6%-Authorized 600,000 shares; issued 200,000 shares......... Common stock-$1 par value-Authorized 5,000,000 shares; issued 1,300,000....... Additional paid-in capital, common Total paid-in capital Retained earnings....... Total stockholders' equity $ 1,000,000 1,300,000 2,400,000 4,700,000 11,900,000 $16,600,000