Trane Comfort Specialists, Inc. reported the following stockholders\' equity on

Question

Trane Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2014: Identify the different classes of stock that Trane has outstanding. What is the par value per share of Trane's preferred stock? Make two summary journal entries to record issuance of all the Trane stock for cash. Explanations are not required. No preferred dividends are in arrears. Journalize the declaration of a $500,000 dividend at June 30, 2014, and the payment of the dividend on July 20, 2014. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required

Explanation / Answer

As balance sheet is not given, so ill solve it without balance sheet.

Answer 1

Common stock and Preferred Stock

Answer 2

$_ par must be given xactly in front of preferred shares, that value is ppar value of preferredv shares.

Answer 3

Dr Cash
Cr Preferred Stock

( only values need to be enter given in balancesheet)

Dr Cash
Cr Common Stock
Cr Additional Paid-in Capital, Common

Answer 4

no of %age of preference shares will go to preffered dividend and balance in common shares.

if 7% preference shares are given of value 1200000 then $84000 willgo to preferrence and balance in commom shares.

Journal entry

Dr Cash Dividends (or Retained Earnings)
Cr Preferred Dividends Payable

Dr Cash Dividends (or Retained Earnings)
Cr Common Dividends Payable

NOTE: PLEASE PROVIDE BALANCESHEET IN ORDER TO GET XACT ANSWERS

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