Please I could not answer these four questions. I need help please, help me. Que

Question

Please I could not answer these four questions. I need help please, help me. Questions 4-7(of 13) E11-2 Reporting Stockholders Equity and Determining Dividend Policy LO 11- The following information applies to the questions displayed below Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed a. Issued 5,800 shares of common stock for cash at $18 per share. b. Issued 1,800 shares of common stock for cash at $21 per share. References Section Break E11-2 Reporting Stockholders Equity and

Explanation / Answer

Part 2 Journal Entries

Part 3 statement of equity stockholder

Part 4 Maximum amount of cash dividend

There is no balance in retained earning. So, no dividend can be distributed to shareholders. Whether is cash available or not. Securtiy permium amount on shares is available but we can't use it for issuing cash dividend.

Assets Amount + Liablities Amount = Stockholder's Equity Amount a. Cash balance increases 104400 + - 0 Increase in shares 104400 b. Cash balance increases 37800 + 0 Increase in shares 37800

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