Reference no: EM132552699

Assignment Instructions:

WeatherStrip Co. needed an infow of capital to expand their business. So the business incorporated and decided to issue stock. The charter from the state of Arkansas authorizes WeatherStrip to issue 150,000 shares of 7%, $100 par value preferred stock, and 400,000 shares of $3 par value common stock. Record the following stock transactions in the general journal on the "Worksheet(a)" tab. Then prepare the stockholder's equity section only of WeatherStrip's balance sheet as of December 31, 2016 on "Worksheet(b)" tab. Assume WeatherStrip had net income of $115,000 for the month of December. Upload your file in Blackboard when you are finished. Memo entries are already provided.

Dec. 1, 2016: Issued 90,000 shares of common stock for cash when the market value of the shares was $16 per share.

Dec. 5, 2016: Issued 700 shares of preferred stock for cash for $150 per share.

Dec. 11, 2016: Issued 30,000 shares of common stock for cash when the market value of the shares was $15 per share.

Dec. 14, 2016: The board of directors of WeatherStrip declared a cash dividend for stockholders of record on December 22, 2016. The dividend declaration was $50,000. (Use a separate Dividends Payable account for the common stockholders and the preferred stockholders.)

Dec. 31, 2016: Paid the dividend.

Question 1: Make the journal entry spreadsheet you would use to explain and leave all formulas