(Answered) Scenario - now that all of the liabilities have been

Accounting

Scenario - Now that all of the liabilities have been completed for the Hogg audit, the audit senior has asked you to review the equity of the company, specifically the recent stock issuances for any potential issues. After reviewing the recent two stock issuances, you have noticed the following potential issues:

The company recently issued 100,000 shares of $1 par value common stock for cash at a time when the market value of each share was $12.

The company issues 25,000 shares of $1 par value common stock for new equipment at a time when the market value of each share was $10.

Analyze and prepare the appropriate journal entries for the company for the issuance of the stock. Provide a recommendation as to the type of dividend that the company should issue. Update the log of issues to include this week's topics.

In addition, the company would like you to provide a recommendation regarding a proposed dividend the company wants to declare. Which type of dividend do you think they should declare and why?

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