Chapter 10, Problem 49AP

Analyzing stockholders’ equity (Learning Objectives 2,3,& 4) 20-25 min.

The Davenport Hotel, Inc., included the following stockholders’ equity on its year-end balance sheet at December 31, 2018

Stockholders’ Equity	$
Paid-in Capital:
Preferred Stock, 6% cumulative, par value $10 per share;	$ 66,000
50,000 shares authorized, 6,600 shares issued and outstanding
Common Stock, par value $2 рer share; 500,000 shares
authorized, 240,000 shares issued and outstanding	480,000
Paid-in Capital in Excess of Par—Common	65,000
Total Paid-in Capital	$ 611,000
Retired Earnings	233,000
Total Stockholders’ Equity	$844,000

Requirements

1. 1. Identify the different issues of stock that the Davenport Hotel, Inc., has outstanding.
2. 2. Give the two entries to record issuance of the Davenport Hotel, Inc.’s stock. Assume that all the stock was issued for cash. Explanations are not required.
3. 3. Assume that preferred dividends are in arrears for 2017 and 2018. Record the declaration of a $45,000 cash dividend on December 30, 2019. Assume no change in the preferred stock account in 2019. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.