Foley Corporation Has the Following Capital Structure at the Beginning

Essay

Foley Corporation has the following capital structure at the beginning of the year:4% Preferred stock, $50 par value, 20,000 shares authorized,
Instructions
(a) Record the following transactions which occurred consecutively (show all calculations).1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share."3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.
(b) Construct the stockholders' equity section incorporating all the above information."