Thoughtful Comfort specialiste, Inc, reported the following stockholder's equity on its balance sheet at June 30, 2018.                                       Stockholder's Equity Paid-In Capital: Preferred Stock-7%, ? Par Value; 725,000 shares authorized, 300,000 shares issued and outstanding    $ 1,200,000 Common Stock-$1 Par Value; 7,000,000 shares authorized, 1,360,000 shares issued and outstanding     1,360,000 Paid-In Capital in Excess of Par-Common                        2,600,000 Total Paid-in Capital                                                         5,160,000 Retained Earnings                                                           12,100,000   Total Stockholder's Equity                                            $ 17,260,000                                               Requirements 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? 3. Make tow summary journal entries to record issuance of all the Thoughtful Comfort Specailists' stock for cash. Explanations are not required. 4. No preferred dividends are in arrears. Jounalize the declaration of a $700,000 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.

Question

Thoughtful Comfort specialiste, Inc, reported the following stockholder's equity on its balance sheet at June 30, 2018.

                                      Stockholder's Equity

Paid-In Capital:

Preferred Stock-7%, ? Par Value; 725,000 shares

authorized, 300,000 shares issued and outstanding    $ 1,200,000

Common Stock-$1 Par Value; 7,000,000 shares

authorized, 1,360,000 shares issued and outstanding     1,360,000

Paid-In Capital in Excess of Par-Common                        2,600,000

Total Paid-in Capital                                                         5,160,000

Retained Earnings                                                           12,100,000  

Total Stockholder's Equity                                            $ 17,260,000

                                              Requirements

1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding.

2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock?

3. Make tow summary journal entries to record issuance of all the Thoughtful Comfort Specailists' stock for cash. Explanations are not required.

4. No preferred dividends are in arrears. Jounalize the declaration of a $700,000 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.

                                                                                        

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