Travel Comfort Specialists, Inc. reported the following stockholders’ equity on its balance sheet at 1 answer below »

Travel Comfort Specialists, Inc. reported the following stockholders’ equity on its balance sheet at June 30, 2016: Stockholders Equity Paid-In Capital: Preferred Stock—6%, ? Par Value; 675,000 shares authorized, 200,000 shares issued and outstanding ……………… $ 1,000,000 Common Stock—$1 Par Value; 9,000,000 shares authorized, 1,320,000 shares issued and outstanding ……………… 1,320,000 Paid-In Capital in Excess of Par—Common …… 2,700,000 Total Paid-In Capital ………….. 5,020,000 Retained Earnings ………….. 11,900,000 Total Stockholders Equity ……….. $ 16,920,000 Requirements 1. Identify the different classes of stock that Travel has outstanding. 2. What is the par value per share of Travel’s preferred stock? 3. Make two summary journal entries to record issuance of all the Travel stock for cash. Explanations are not required. 4. No preferred dividends are in arrears. Journalize the declaration of a $900,000 dividend at June 30, 2016, and the payment of the dividend on July 20, 2016. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.

 

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