Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash: 730,000 shares of no-par common stock were authorized; 160,000 shares were issued on January 1, 2016, at $18.00 per share.
220,000 shares of $120 par value, 9.00% cumulative, preferred stock were authorized, and 74,000 shares were issued on January 1, 2016, at $140 per share.
Net income for the years ended December 31, 2016 and 2017, was $1,320,000 and $2,620,000, respectively.
No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $1,830,000, payable on February 12, 2018, to holders of record as of January 19, 2018.
Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with + for increases and amounts with – for decreases.)
Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with – for decreases.)
Use the horizontal model for the payment of dividends on February 12, 2018. (Use amounts with + for increases and amounts with – for decreases.)
Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)