Business Finance Homework Help

The Clayton Company is a retail company that began operations on October1, 2018, when it incorporated in the state of North Carolina. The Clayton Company is authorized to issue150,000 shares of $1 par value common stock and 40,000 shares of

8%, $40 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 5% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month.

Oct 1: Issued 30,000 shares of $1 par value common stock for cash of $20 per share.

Nov 17 : Declared cash dividends of $1 per outstanding share of common stock.

what is the journal entry for the Nov 17 transaction…