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Stockholders' Equity & Corporations Worksheet Part 1. Partnerships and Corporations Use your own words to compare and contrast the characteristics of a partnership and the characteristics of a corporation. Use the Internet or your Fortis LIRN resources to support your answer, as appropriate. Be sure to cite your sources. Part 2. Common Stock on July 2, SpaceShifter Inc. issued 62,000 shares of $3.00 par value common stock a. Prepare the journal entry the shares are issued for $10.00 per share. Enter your answers in the shaded boxes. General Journal Date Account Names Debit Credit Jul. rocord sale of stock b. Prepare the journal entry the shares are issued for $6.00 per share. Enter your answers in the shaded boxes. General Journal Date Account Names Debit Credit Jul. To record sale of stock Page 2 Part 3. Cash Dividends on November 23, Wheelhouse Entertainment declares a $180,000 dividend Wheelhouse's common stock has $6 par value and 65 000 shares outstanding. Its preferred stock is 4%, $11 par, and 30,000 shares outstanding. Cope did not pay dividends for two years prior tothe current year. The dividend is to be paid on December 31. a. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is cumulative. Hint: Determine the preferred stock payment first. Enter your answers in the shaded boxes. General Journal Date Account Names Debit Credit Nov 23 To record declaration of dividena General Journal Date Account Names Debit Credit Dec 31 To record payment of dividend b. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is noncumulative. Hint: Determine the preferred stock payment first Enter your answers in the shadec boxes. General Journal Date Account Names Debit Credit Nov 23 To record declaration of dividend General Journal Date Account Names Debit Credit Dec 31 To record payment of dividend Page 3 Part 4. Stockholders' Equity Ralston Enterprises has treasury stock balance of $300,000, common stock balance of $2,500,000, a retained earnings balance of $3,200,000, a preferred stock balance of $600,000, and an additional paid-in capital balance of $1,000,000. Prepare the stockholders' equity section of Ralston's balance sheet. Enter your answers in the shaded boxes. Total Stockholders' Equity

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The characteristics of a partnership and a corporation are similar and different in many ways. Both entities usually have more than one owner, i.e. the partnership is formed between two or more persons and the corporation is owned by shareholders. Partnerships are formed based on an agreement between two or more persons and are easy to form and start. Corporations are more difficult to start because legal documents have to be filed and the state or national incorporation requirements of the business’s location have to be met. By filing this paperwork the corporation becomes a legal entity. While partnerships end with the withdrawal or death of a partner, or admittance of a new partner, corporations have an unlimited life as a separate legal entity and are not affected by shareholder changes....
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