Identifying source of equity, stock issuance, and dividendsTillman Comfort Specialists, Inc. reported the following stockholders’ equity on balance sheet at June 30, 2018:RequirementsIdentify the different classes of stock that Tillman Comfort Specialists has outstanding.What is the par value per share of Tillman Comfort Specialists’ preferred stock?Make two summary journal entries to record issuance of all the Tillman Comfort Specialists stock for cash. Explanations are not required.No preferred dividends are in arrears. Journalize the declaration of a $200,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. Stockholders' EquityPaid-In Capital:Preferred Stock-5%, ? Par Value; 625,000 sharesauthorized, 325,000 shares issued and outstanding$ 1,300,000Common Stock-$1 Par Value; 7,000,000 sharesauthorized, 1,350,000 shares issued and outstanding1,350,000Paid-In Capital in Excess of Par-CommonTotal Paid-In Capital2,600,0005,250,000Retained EarningsTotal Stockholders' Equity11,800,000$ 17.050,000

1) Classes of stock that Tillman Comfort Specialists has outstanding: i ) Preferred stock ii )…

Answered: Stockholders' Equity Paid-In Capital:…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 73E: Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000...

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Identifying source of equity, stock issuance, and dividends

Tillman Comfort Specialists, Inc. reported the following stockholders’ equity on balance sheet at June 30, 2018:

Requirements

Identify the different classes of stock that Tillman Comfort Specialists has outstanding.
What is the par value per share of Tillman Comfort Specialists’ preferred stock?
Make two summary journal entries to record issuance of all the Tillman Comfort Specialists stock for cash. Explanations are not required.
No preferred dividends are in arrears. Journalize the declaration of a $200,000 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.

Stockholders' Equity
Paid-In Capital:
Preferred Stock-5%, ? Par Value; 625,000 shares
authorized, 325,000 shares issued and outstanding
$ 1,300,000
Common Stock-$1 Par Value; 7,000,000 shares
authorized, 1,350,000 shares issued and outstanding
1,350,000
Paid-In Capital in Excess of Par-Common
Total Paid-In Capital
2,600,000
5,250,000
Retained Earnings
Total Stockholders' Equity
11,800,000
$ 17.050,000

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