Solved by verified expert :Question [1]The charter for Zippy Inc. authorizes the company to issue 500,000 shares of $7, no-par preferred stockand 1,100,000 shares of common stock with $1 par value. During its start-up phase, Zippy Inc. computedthe following transactions:2012April 6 Issued 550 shares of common stock to the promoters who organized the corporation, receivingcash of $16,500.April 12 Issued 650 shares of preferred stock for cash of $28,000.April 14 Issued 1,800 shares of common stock in exchange for land with a market value of $22,000.Required:1. Prepare the journal entries for the month of April, 2012.2. Prepare the stockholder’s equity section of Zippy’s balance sheet at December 31, 2012. Assumethat the company earned net income of $38,000 during this period.Question [2]NHS Co. issued $350,000 of 10-year bonds payable on January 1. NHS pays interest each January 1 andJuly 1 and amortizes any discount or premium by the straight-line method. NHS issued the bonds at aprice of $430,000 when the market rate was below 5%.Required:Journalize NHS’s issuance of the bonds and first semiannual interest payment. Explanations are notrequired.Question [3]Del Mare Inc. earned net income of $210,000 during the year ended December 31, 2012. On December15, 2012, Del Mare Inc. declared the annual cash dividend on its 3% preferred stock (total par value,$170,000) and a $0.80 per share cash dividend on its common stock (95,000 shares outstanding). DelMare Inc. then paid the dividends on January 4, 2013.Required:Journalize for Del Mare Inc.a. Declaring the cash dividends on December 15, 2012b. Paying the cash dividends on January 4, 2013.
