Voyage Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018:

Question:

Voyage Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018:
Stockholders' Equity Paid-In Capital: Preferred Stock-7%, ? Par Value; 625,000 shares authorized, 280,000 shares issued

Requirements
1. Identify the different classes of stock that Voyage Comfort Specialists has outstanding.
2. What is the par value per share of Voyage Comfort Specialists' preferred stock?
3. Make two summary journal entries to record issuance of all the Voyage Comfort Specialists' 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, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9780134486840

6th Edition

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

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