Posted: August 28th, 2016

Show the journal entry

Addressing part A only.
Permabilt Corp. was incorporated on January 1, 2010, and issued the following stock for cash:
3,600,000 shares of no-par common stock were authorized; 1,050,000 shares were issued on January 1, 2010, at $46 per share.
1,200,000 shares of $100 par value, 10.5% cumulative, preferred stock were authorized, and 420,000 shares were issued on January 1, 2010, at $132 per share.
Net income for the years ended December 31, 2010, 2011, and 2012, was
$15,750,000, $22,350,000, and $26,100,000, respectively. No dividends were declared or paid during 2010 or 2011. However, on December 17, 2012, the board of directors of Permabilt Corp. declared dividends of $37,200,000, payable to the holders of record as of January 4, 2013. ·
Required:
Show the journal entry for
1. the issuance of common stock and preferred stock on January 1, 2010.
2. the declaration of dividends on December 17, 2012.
3. the payment of dividends on February 9, 2013.