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Question - Arm and Hammer Construction Company, Inc. had these transactions during June through December 2019.
June 1st Issued 62,000 shares of $3 stated value common stock for cash at $5 per share.
July 1st Issued 3,000 shares of 4% $100 par value preferred stock for cash at $110 per share.
October 1st Purchased 2,000 shares of common stock previously issued on June 1st for $6 per share.
November 1st Declared a cash dividend of $2 per share on the preferred stock, and 25 cents per share on the common stock. Hint: dividends cannot be declared or paid on any shares of treasury stock held by the company.
December 15th paid the preferred stock and common stock dividends declared on November 1st.
Required - Prepare journal entries for the above transactions.
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