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1. Chapter 11 Practice Problems part I Fall 2020 In 2020, Smith Corporation issued 10,000...

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1. Chapter 11 Practice Problems part I Fall 2020 In 2020, Smith Corporation issued 10,000 shares of its $100 par value 8% preferred stock at a price of $103 per share. They also issued 40,000 shares of its $3 par value common stock at a price of $10 per share. This year, Smith had net income of $250,000. They paid the preferred stockholders the appropriate dividend and the common stockholders a $1 per share dividend. Required: 1 1. Prepare the Journal Entry to record the issuance of the preferred stock 2. Prepare the Journal Entry to record the issuance of the common stock. 3. Compute the amount of retained eamings after the first year of operations, 4. Prepare the stockholder's equity section of the Balance sheet after their first year of operation. The first line is started for you. Stockholder's Equity 8% preferred stock, S100 par value, 10,000 shares issued S

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