Prepare the necessary journal entries for the transactions

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Reference no: EM133346206

Question: Part A Dr. Pepper started FutureBio Inc. (FB) on October 1, 2022. a) On October 1, 2022, FB issued 1000 common shares to Dr. Pepper in exchange for $100,000 in cash. Also, the following events occurred in December 2022. b) On December 1, 2022, FB borrowed $1,200,000, 5-year loan, bearing 8% interest. c) On December 10, 2022, FB issued 1000 preferred Class A shares to investors for $500 each. The articles of incorporation (charter) disclosed that the Class A, non-cumulative preferred shares had a stated value of $ 200 per share. d) On December 28, 2022, FB declared and paid a 5% stock dividend on the common shares. The market value of the common shares before the announcement of the stock dividend was $ 80 per share. e) On December 30, 2022, FB paid a dividend to the common shareholders of record of $50 per share. Required: Please prepare the necessary journal entries for the above transactions as well as any adjusting entries required at the year-end date December 31, 2022. Narratives are NOT required.

Question: Part B. In addition to common shares outstanding, Spain Corporation has the following preferred shares outstanding at the end of 2022, as indicated in the following table.

Reference no: EM133346206

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