Lindstrom Corporation was organized in January 2012. The s
Question and Solution
Lindstrom Corporation was organized in January 2012. The state authorized 200,000 shares of no-par common stock and 50,000 shares of 12%, $25 par, preferred stock. Record the following transactions that occurred in 2012: a. Issued 25,000 shares of common stock at $40 per share. b. Issued 3,000 shares of preferred stock for a building appraised at $100,000. c. Declared a cash dividend sufficient to meet the current-dividend preference on preferred stock and pay common shareholders $4.00 per share.