Acompany has the following transactions during the year related to stockholders’ equity.
february 1 issues 5,600 shares of no-par common stock for $15 per share.
may 15 issues 400 shares of $10 par value, 10.5% preferred stock for $12 per share.
october 1 declares a cash dividend of $1.05 per share to all stockholders of record (both common and preferred) on october 15.
october 15 date of record.
october 31 pays the cash dividend declared on october 1.
required:
1. record each of these transactions.

a- Cash/bank Dr  $84000

          common stock Cr  $84000

b- Cash/bank Dr $4800

            Preferred stock Cr  $4000

             paid-in capital Cr   $800.

c- Retained earnings  Dr $6300 ($1.05×6000)

                 Dividend Payable Cr   $6300

d- Dividend Payable  Dr $6300

                         Cash/Bank Cr  $6300

Explanation:

A- Common stock with no par value are stock issued without discount or premium so the total amount received is debited to cash/bank account and credited to common/equity stock account. The entry is as follows:

Cash/bank  $84000

          common stock  $84000

B- The issuance of preferred stock at a premium results in an entry for paid in capital which is the excess of par value. The entry is as follows;

Cash/bank $4800

            Preferred stock  $4000

             paid-in capital    $800.

C- Once a dividend is declared, the company becomes liable to pay which creates a liability until it's settled/paid off to shareholders. The entry is:

Retained earnings  $6300 ($1.05×6000)

                 Dividend Payable   $6300

D- Once we settle Payment of dividend we decrease our liability and decrease our cash/bank depending upon mode of payment. The entry is:

Dividend Payable  $6300

                         Cash/Bank  $6300

1 February

Dr Cash                          84,000

Cr Common shares      84,000

(to record the issuance of 5,600 common share at $15 per share)

May 15th

Dr Cash                                                       4,800

Cr Preferred shares                                  4,000

Cr Paid-in capital - preferred shares        800

(to record issuance of 400 preferred shares at with par value at $10 and issuing price at $12)

October 1st

Dr Retained Earnings                                                              6,300

Cr Dividend Payable - Common and Preferred shares       6,300

(to record the dividend declaration paid to 6,000 preferred and common stocks outstanding).

Oct 15: No entries needed

October 31st

Dr Dividend Payable - Common and Preferred shares       6,300

Cr Cash                                                                                   6,300

(to record cash dividend payment)      

Explanation:

All entries has the explanation part below. Calculations are shown as below:

1 Feb: Because the stock has no par, Common stock account is recorded as much as the actual cash receipt: 5,600 x 15 = $84,000

May 15: Cash receipt is 400 x 12 = 4,800. Preferred shares account is credited at No of shares issued x par-value =400 x 10 =$4,000. The surplus of $800 due to issuing price is higher than par is credited into Paid-in capital account.

Oct 1st: Dividend payment obligations is calculated as 1.05 x shares outstanding = 1.05 x (5,600 + 400) = $6,300.  

its kinda hard to answer this when we dont have all the information that we need.

this conflict is person vs. society

if you need further explanations, comment below!

hope this ! < 3