T-Shirt trends was organized as a publicly held corporation on September 1 ad authorized to issue 10,000 shares of $100 par, $8 preferred stock, and 25,000 shares of $50 par common stock.
Journalize these transactions:
Dec. 16- Received $5,000 for 50 shares of $8 preferred stock issued.
Mar. 24- Issued 1,000 shares of common stock at $55 per share.
Aug. 15- Declared a dividend of $32,400 on 4,050 shares of $8 preferred stock outstanding, payable on September 15 to stockholders of record on September 1 (September 1 transaction was for $400,000)
Aug. 15- Declared cash dividend of 25 cents per share on 15,500 shares of common stock outstanding, payable on September 30 to stockholders of record on September 1 (this September 1 transaction was for $600,000)
Dec. 31 Prepared the closing entries in the general journal to close Income Summary for the net income of $102,600 and to close the two Dividends accounts.
