Question

Using Luca’s expertise at crafting incomprehensible legalese documents, your group writes and agrees upon a corporate charter. You also unanimously vote to authorize 1,000,000,000 (yes, that’s “billion”) shares of $0.10 par value common stock and 1,000 shares of non-voting, 5% cumulative preferred stock with a $100 par value.

You:1,000 shares CS

Luca: 1,000 shares CS

Avelia: 3,000 shares CS, 10 shares PS

Mollena: 1,000 shares CS

Corrine: 4,000 shares CS

At the end of the Month Mr.Speakers declares a $10,000 dividend payable 2/1/2016. Record the journal entry for 1/31/2016. On 2/1/2016, how much will each owner receive?

You:

Luca:

Avelia:

Mollena:

Corrine:

Answer 1