Chapter $9$: Assignment

Stockholders' Equity

During $2022,$ Road Pavement Corporation engaged in the following selected transactions:

Jan $01$: Issued $75,000$ $$2$ par value Common Stock at $$6$ per share.

Issued $10,000$ $$4$ par value $6\%$ Preferred Stock at par.

Jun $15$: Re$-$acquired $10,000$ shares of Common Stock sold in Jan for $$3$ per share.

Aug $10$: Sold $4,000$ shares of the re$-$acquired Common Stock purchased in June for $$8$ per share.

Sept $30$: The Board of Directors declared and recorded a cash dividend of $$14,000$ to its

shareholders.

Nov $30$: Paid the cash dividend declared in September.

Dec $15$: Issued another $50,000$ shares of common stock at $$7$ per share.

Required:

$($a$)$ Record the Journal Entries for the above transactions:

$($b$)$ Prepare the Stockholders Equity Section of the Balance Sheet if the Retained Earnings at the

end of the year has a balance of $$125,000.$

$($c$)$ Compute the amount of Dividend to be paid to the $6\%$ Preferred Stockholders and the

amount to be paid to the Common Stockholders