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$[The$ following information applies $to$ the questions displayed below.$]$

Permabilt Corporation was incorporated $on$ January $1,2022,$ and issued the following stock for cash:

$2,000,000$ shares $ofno-$par common stock were authorized; $750,000$ shares were issued $on$ January $1,2022,at$ $$35$

per share.

$800,000$ shares $of$ $$100$ par value, $7\mathrm{.}5\%$ cumulative, preferred stock were authorized; $540,000$ shares were issued $on$

January $1,2022,at$ $$105$ per share.

$No$ dividends were declared $or$ paid during $2022or2023.$ However, $on$ December $22,2024,$ the board $of$ directors $of$

Permabilt Corporation declared dividends $of$ $$15,000,000,$ payable $on$ February $12,2025,to$ holders $of$ record $asof$

January $8,2025.$

Required:

Use the horizontal model for the issuance $of$ common stock and preferred stock $on$ January $1,2022.$ Indicate the financial statement

effect.

Use the horizontal model for the declaration $of$ dividends $on$ December $22,2024.$ Indicate the financial statement effect.

Use the horizontal model for the payment $of$ dividends $on$ February $12,2025.$ Indicate the financial statement effect.

Complete this question $by$ entering your answers $in$ the $tabs$ below. Complete this question $by$ entering your answers $in$ the $tabs$ below.

Required $1$

Use the horizontal model for the issuance $of$ common stock and preferred stock $on$ January $1,2022.$ Indicate the financial statement effect.

Note: Enter decreases with a minus sign $to$ indicate a negative financial statement effect.

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