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Project 3: Stockholders' Equity (10 points) Required: Answer the questions on the following page in this booklet and turn in the entire booklet at the beginning of class on the date specified by your instructor. Shown below is the stockholders' equity section of Holiday Travels balance sheet at December 31, 2020 Common stock, $2 par value. 5.000.000 shares authorized, 390,000 shares issued and outstanding $780,000 Additional paid-in capital 1,060,000 Retained earnings 2,330,000 Total stockholders' equity $ 4.170.000 During 2021, the following events occurred: Holiday Travels was authorized to sell 120,000 shares of $100 par, 8% preferred stock Holiday sold 18,500 shares of the preferred stock at its par value A cash dividend of $295,000 was declared and paid.) Holiday Travels declared and issued a 10% stock dividend on the common stock when the market value of the stock was $16 per share 16-1 15 Net income for the year was $1,530,000 Instructions for Project 3: Answer the following, based on the information given on the preceding page: Capital stock, as of December 31, 2021: # of common shares authorized 5,000,000 skar # of common shares issued and outstanding 429000 # of preferred shares issued and outstanding 18, SOD Shares 195,000 Amount of cash dividend to common stockholders $ 295,000 Amount of cash dividend to preferred stockholders $ 1480000 Total debit to Stock Dividends account $ s 624,000 Additional paid-in capital, at December 31, 2021 $ Retained earnings, at January 1, 2021 $ 2,330,000 Retained earnings, at December 31, 2021 $ 2944000 Total Stockholders' Equity, at December 31, 2021 $ C.S. 390,000x1.4 X$2 - 858000 P.S. 18,5001 X3100 = 185oooo APIC 2,330,000 +15 x 390,000) = 8,18C R/E 2,941,000

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