Barton Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations. 2018 Jan. 1 Authorized...

Barton Corporation began operations on January 1, 2018. The following transactions relating to stockholders’

equity occurred in the first two years of the company’s operations.

2018

Jan. 1 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares

of $100 par value, 10% cumulative preferred stock.

2 Issued 200,000 shares of common stock for $12 cash per share.

3 Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and

merchandise inventory valued at $380,000.

4 Paid $10,000 cash to the company’s founders for organization activities.

5 Issued 12,000 shares of preferred stock for $110 cash per share.

2019

June 4 Issued 100,000 shares of common stock for $15 cash per share.

Required

1. Prepare journal entries to record these transactions.

2. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2018 and 2019.

3. Prepare a table showing dividend allocations for 2018 and 2019 assuming Barton declares the following

cash dividends: 2018, $50,000, and 2019, $300,000.

4. Prepare the January 2, 2018, entry for issuance of 200,000 shares of common stock for $12 cash per share if

a. Common stock is no-par stock without a stated value.

b. Common stock is no-par stock with a stated value of $10 per share.