Reference no: EM132493334

Question 1: Milton Company's charter authorities 1,000,000 shares of common stock and 400,000 shares of preferred shares. in its first year of operation during 2018, the company presented the following transactions:

1. Issued 5,000 shares of common stock. Stock has per value of $0.01 per share and was issued at $30 per share
2. Earned net income $200,000
3. Paid dividends of $5 per share.

Question 2: Prepare the journal entry to record the following:

1. Common stock shares issued
2. Close out net income to retained earnings
3. Dividend paid
4. Close out dividend to retained earnings.

Question 3: Prepare the Stockholders equity section of the company's balance sheet at December 31, 2018 and include the following information.

1. information on par values
2. the number of shares authorized and issued where necessary and
3. the sub total for the total paid in capital
4. total stockholders equity