‘ Equity and Determining Dividend Policy Assignment | College Homework Help

Required information E11-2 Reporting Stockholders’ Equity and Determining Dividend Policy [LO 11-2. LO 11-3) [The following information applies to the questions displayed below) Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 per valus year, the following selected transactions were completed a issued 7000 shares of common stock for cash at $30 per share Issued 3.000 shares of common stock for cash at $33 per share. E11-2 Part 1 Required: 1. Complete the table below, indicating the account amount and direction of the effect for the above transactions (Enter an decreases to account balances with a minus sign) Liabilities Stockholders Equity Assets year, the following selected transactions were completed: a. Issued 7,000 shares of common stock for cash at $30 per share. b. Issued 3,000 shares of common stock for cash at $33 per share. E11-2 Part 2 2. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select “No Journal Entry Required in the first account field.) Record the issuance of 7.000 shares of common stock with a par value $2 for a price of 530 per share e 52 for a Record the issuance of 3.000 shares of common stock ith a par value $2 for a price of 533 per share Credit Recent Required Information E11-2 Reporting Stockholders’ Equity and Determining Dividend Polley [LO 11-2, LO 11-3) (The following information applies to the questions displayed below) Incentive Corporation was authorized to issue 12.000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed: a. Issued 7,000 shares of common stock for cash at $30 per share. b. Issued 3.000 shares of common stock for cash at $33 per share. E11-2 Part 3 3. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected net income of $200. INCENTIVE CORPORATION Balance Sheet (Partia At December 31 Stockholders’ Equity Contributed Capital Total Contributed Cap Tota Stockholders Equi E11-2 Part 4 4. Incentive Corporation has $40,000 in the company’s bank account At year-end, the accounts reflected a profit of $200. What is the maximum amount of cash dividends the company can declare and distribute? Maximum amount of cash dividends