Common and Preferred Cash Dividends
Wang Company currently has 200,000 shares of $1 par common stock outstanding and 2,900 shares of $50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of $0.33 per share on common stock to shareholders of record on August 1, payable on August 5.
On July 15, the board of directors declared a semiannual dividend of $4 per share on preferred stock to shareholders of record on August 5, payable on August 10.
Prepare journal entries for the declaration and payment of the common and preferred stock cash dividends. If an amount box does not require an entry, leave it blank.
|1||20-- Jul. 10||1|
|Date||ACCOUNT TITLE||DOC. NO.||POST. REF.||DEBIT||CREDIT|
|20-- Jul. 10||Cash Dividends||66000||=200000*0.33|
|Common dividends payable||66000|
|Jul. 15||Cash Dividends||11600||=2900*4|
|Preferred dividends payable||11600|
|Aug. 5||Common dividends payable||66000|
|Aug. 10||Preferred dividends payable||11600|
Get Answers For Free
Most questions answered within 1 hours.