Made-Off, Corp's board of directors has authorized the issuance of 180,000 shares of $0.01 par common...

 

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Made-Off, Corp's board of directors has authorized the issuance of 180,000 shares of $0.01 par common stock and 50,000 shares of $100 par, 9%, cumulative, participating preferred stock as of January 1, 2020. The following transactions occurred during the year. February 28, 2020: The company issued 50,000 shares of common stock for $410,000. March 31, 2020: Made-Off issued 2,000 shares of preferred stock to a vendor in exchange for specialized equipment. This is the first trade for the preferred stock, so no market value is available, but the equipment has a fair value of $203,000. April 30, 2020: Made-Off issues 40,000 shares of common stock and 2,500 shares of preferred stock in exchange for $630,000. The common and preferred shares were trading for $9 and $101 per share, respectively. May 30, 2020: Made-Off repurchased 6,000 shares of common stock for $60,000. June 30, 2020: Made-Off sold 3,000 shares of Treasury Stock for $11 per share. July 31, 2020: Made-Off sold 2,000 shares of Treasury Stock for $17,500. December 31, 2020: Balance Sheet Date - see (b) January 31, 2021: Made-Off declared and issued a 15% stock dividend to common shareholders when the stock price was $17.50 per share. February 1, 2022 - December 30, 2024: no activities or entries related to stock or dividends. December 31, 2024: Made-Off declared a cash dividend of $300,000. The dividend will be paid on January 20, 2025 to shareholders of record on January 15, 2025. Instructions: (a) [14 pts] Record the journal entries for all the above transactions through July 31, 2020. (b) [5 pts] Report the Stockholders' Equity Section of Made-Off as of December 31, 2020. (c) [3 pts] Record the journal entry for January 31, 2021. (d) [7 pts] Record the journal entry for the December 31, 2024 dividend declaration, ex-dividend date, and dividend payment, if any. (Assume only full years for calculating preferred dividends. Be sure to distinguish between amounts due or paid to preferred and common shareholders). Made-Off, Corp's board of directors has authorized the issuance of 180,000 shares of $0.01 par common stock and 50,000 shares of $100 par, 9%, cumulative, participating preferred stock as of January 1, 2020. The following transactions occurred during the year. February 28, 2020: The company issued 50,000 shares of common stock for $410,000. March 31, 2020: Made-Off issued 2,000 shares of preferred stock to a vendor in exchange for specialized equipment. This is the first trade for the preferred stock, so no market value is available, but the equipment has a fair value of $203,000. April 30, 2020: Made-Off issues 40,000 shares of common stock and 2,500 shares of preferred stock in exchange for $630,000. The common and preferred shares were trading for $9 and $101 per share, respectively. May 30, 2020: Made-Off repurchased 6,000 shares of common stock for $60,000. June 30, 2020: Made-Off sold 3,000 shares of Treasury Stock for $11 per share. July 31, 2020: Made-Off sold 2,000 shares of Treasury Stock for $17,500. December 31, 2020: Balance Sheet Date - see (b) January 31, 2021: Made-Off declared and issued a 15% stock dividend to common shareholders when the stock price was $17.50 per share. February 1, 2022 - December 30, 2024: no activities or entries related to stock or dividends. December 31, 2024: Made-Off declared a cash dividend of $300,000. The dividend will be paid on January 20, 2025 to shareholders of record on January 15, 2025. Instructions: (a) [14 pts] Record the journal entries for all the above transactions through July 31, 2020. (b) [5 pts] Report the Stockholders' Equity Section of Made-Off as of December 31, 2020. (c) [3 pts] Record the journal entry for January 31, 2021. (d) [7 pts] Record the journal entry for the December 31, 2024 dividend declaration, ex-dividend date, and dividend payment, if any. (Assume only full years for calculating preferred dividends. Be sure to distinguish between amounts due or paid to preferred and common shareholders).

Answer rating: 100% (QA)

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