Terrific Comfort Specialists, Inc., reported the following stockholders’ equity

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Terrific Comfort Specialists, Inc., reported the following stockholders’ equity on its balance sheet at June 30, 2012:


TERRIFIC COMFORT SPECIALISTS, INC.  Stockholders’ Equity June 30, 2012
	Paid-in Capital:
	Preferred stock, 5%, ? par, 650,000 shares authorized, 280,000 shares issued	$ 1,400,000
	Common stock, par value $1 per share, 5,000,000 shares authorized,
	1,350,000 shares issued and outstanding	1,350,000
	Paid in capital in excess of par—common	2,400,000
	Total paid-in capital	5,150,000
	Retained earnings	12,300,000
	Total stockholders’ equity	$ 17,450,000

Requirements

Requirements

1. Identify the different issues of stock that Terrific has outstanding.

2. What is the par value per share of Terrific’s preferred stock?

3. Make two summary journal entries to record issuance of all the Terrific stock for
cash. Explanations are not required.

4. No preferred dividends are in arrears. Journalize the declaration of a $600,000
dividend at June 30, 2012. Use separate Dividends payable accounts for preferred
and common. An explanation is not required