Common and Preferred Stockholders Assignment
12. Journalize the following business transactions: 12/1/06 The XYZ Company was incorporated with an initial Infusion of $100,000 cash and the issuance of 200,000 shares of common stock, face value $0.50. 12/10/06 The Company sold an additional 400,000 shares of common stock for $800,000. 3/31/07 The Company decided to significantly expand its operations.
A small group of investors provided the company with $10,000,000. The company issued 1,000,000 shares of cumulative Preferred stock. 5/31/07 The Company announced it would pay stockholders of record (common and preferred stockholders) on 6/30/07 a dividend of $1 per share on 7/15/07 7/15/07 The Company sent dividend checks to its stockholders. 9/30/07 The Company announced a 2 for 1 stock split for holders of common stock on 10/15/07. The stock split will take place on 10/31/07. 12/31/07 The Company purchased 100,000 shares of its common stock for $100,000. .