Monty Company reported the following amounts in the stockholders’ equity section of its December 31, 2016,...

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Monty Company reported the following amounts in thestockholders’ equity section of its December 31, 2016, balancesheet.
Preferred stock, 9%, $100 par (10,000 shares authorized, 1,800shares issued) $180,000
Common stock, $5 par (101,500 shares authorized, 20,300 sharesissued) 101,500
Additional paid-in capital 130,000
Retained earnings 486,000
Total $897,500

During 2017, Monty took part in the following transactionsconcerning stockholders’ equity.
1. Paid the annual 2016 $9 per share dividend on preferred stockand a $2 per share dividend on common stock. These dividends hadbeen declared on December 31, 2016.
2. Purchased 1,800 shares of its own outstanding common stock for$41 per share. Monty uses the cost method.
3. Reissued 700 treasury shares for land valued at $31,400.
4. Issued 510 shares of preferred stock at $104 per share.
5. Declared a 10% stock dividend on the outstanding common stockwhen the stock is selling for $45 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $9 per share dividend on preferredstock and the $2 per share dividend on common stock. Thesedividends are payable in 2018.
please explain detail

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Solution Journal Entries Monty Company Event Particulars Debit Credit 1 Dividend payable Dr 18009 203002 5680000 To Cash 5680000 To record dividend payment 2 Treasury Stock Dr See Answer

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Preferred stock, 9%, $100 par (10,000 shares authorized, 1,800shares issued)		$180,000
Common stock, $5 par (101,500 shares authorized, 20,300 sharesissued)		101,500
Additional paid-in capital		130,000
Retained earnings		486,000
Total		$897,500

1.		Paid the annual 2016 $9 per share dividend on preferred stockand a $2 per share dividend on common stock. These dividends hadbeen declared on December 31, 2016.
2.		Purchased 1,800 shares of its own outstanding common stock for$41 per share. Monty uses the cost method.
3.		Reissued 700 treasury shares for land valued at $31,400.
4.		Issued 510 shares of preferred stock at $104 per share.
5.		Declared a 10% stock dividend on the outstanding common stockwhen the stock is selling for $45 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2017 $9 per share dividend on preferredstock and the $2 per share dividend on common stock. Thesedividends are payable in 2018.