D- 4 Test Bank for Accounting Principles, Tenth Edition Problem D III Corporation Entries (28 points) Zippo Corporation stockholders' equity consisted of the following on January 1, 2012: Stockholders Equity Paid-in capital Capital stock 6% Preferred stock, $100 par value, cumulative. 50,000 shares authorized, 30,000 shares issued and outstanding $ 3,000,000 Common stock, no par, $20 stated value, 1,000,000 shares authorized, 500,000 shares issued and outstanding 10 000 000 Total capital stock 13,000,000 Additional paid-in capital In excess of par valuep referred $300,000 In excess of stated valuecommon 600 000 900 000 Total paid-in capital 13,900,000 Retained earnings (Note A) 4 100 000 Total stockholders' equity $18,000,000 Note A: Preferred dividends are in arrears for 2011. Instructions: Prepare the appropriate journal entries, if any, for the following transactions in 2012. You may omit journal entry explanations but you should show computations. Jan. 25 Issued 60,000 shares of common stock for $40 per share. Feb. 18 The Board of Directors declared a cash dividend on preferred and common stock totaling $700,000, payable on March 15, to stockholders of record on February 28. (Record dividends payable on preferred and common stock in separate accounts.) Feb. 28 Date of record for cash dividends on preferred and common stock. Mar. 15 Paid the cash dividend to preferred and common stockholders