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What is the total stockholders equity of Entity A based on the following account balances?

Common Stock $950,000

Paid-In Capital in Excess of Par 50,000

Retained Earnings 175,000

Treasury Stock 25,000

Accounts payable 40,000

Accumulated other comprehensive

income 10,000

Show your work on this ICE.

Part 2

Journalize the following transactions for Entity B. Entity B is authorized to issue 1,000,000 shares of $1 par common stock.

A. January 1. Issued 600,000 shares at $6 per share.

B. March 15. Purchased 5,000 shares for the Treasury at $7 per share.

C. October 1. Declared a 75 cent per share dividend to stockholders of record on October 15, 2020, payable on October 31, 2020.

Part 3 Indicate whether each statement is True (T) or False (F). Use CAPITAL letters.

____ 1. Dividends in arrears on cumulative preferred stock must be paid before common shareholders receive a cash dividend.

____ 2. When a cash dividend previously declared is paid, stockholders equity decreases and liabilities increase.

____ 3. A company may choose to expand by issuing common stock instead of debt because the company is not required to pay a dividend.

____ 4. Bonds that can be exchanged for common stock are called callable bonds.

Part 4

Are dividends in arrears on cumulative preferred stock a liability?

If Entity C has 1,000,000 shares of common stock authorized, 400,000 common shares issued, and 5,000 shares common stock, what is the number of common share outstanding?

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