Question

Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends...

Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends totaling $15,000 are in arrears.) Common, $1 par, 100,000 shares On October 22, the board of directors declared cash dividends totaling $100,000, payable on December 24 to shareholders of record as of November 24. The preferred stock is NONCUMULATIVE. Which of the following will be included in the journal entry to record the declaration of the dividends?

Question 1 options: Debit Paid-in capital – dividends in arrears $15,000

Debit Retained earnings $115,000

Credit Dividends payable, preferred $95,000

Credit Dividends payable, common $20,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock...
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,...
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of...
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of $1 par value common stock outstanding. As of December 31, 2018, it had $900,000 of Retained earnings. On December 31, 2019, the Board of Directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared in 2017 and 2018 and no dividends were in arrears prior to 2017. The company is considering the following options. Option...
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding....
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporation’s board of directors declares a 12% stock dividend to be issue on March 2, 2020. On the declaration date, the corporation’s common stock fair market value is $4. On declaration date, the corporation will record: * Debit Stock Dividend $144,000 Debit Stock Dividend $192,000 Credit Stock Dividend $144,000 Credit Stock Dividend $192,000 A Company has 30,000 shares of...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the...
Question 6 Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and...
Question 6 Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013? A. $20,000 B. $50,000 C. $70,000 D. $0
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 124,000 shares...
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 124,000 shares of $12 par common stock. 9,000 shares of $90 par, 4 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,000 shares of preferred stock and a $3 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount...
The shareholders equity section of Yessir corporation at December 31, 2020 included the following: $6 preferred...
The shareholders equity section of Yessir corporation at December 31, 2020 included the following: $6 preferred shares cumulative, 10,000 shares authorized 8,000 shares issued            $800,000 Common shares, 250,000 shares authorized, 200,000 shares issued                                  $2,000,000 Dividends were not declared on the preferred shares in 2020 and are in arrears. On September 15, 2021, the board of directors of yessir corporation declared on the preferred shares for 2020 and 2021, to shareholders of record on October 1, 2021, payable on October 15,2021...
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares...
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $3,000 dividend in 2019. In 2020, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020? Group of answer choices a. Preferred stockholders get $4,000 and Common stockholders get $11,000 b....
On March 3rd, 4J Corporation issued 5,000 shares of its $2.00 par common stock for $15...
On March 3rd, 4J Corporation issued 5,000 shares of its $2.00 par common stock for $15 per share. On July 1, the company bought back 1,500 shares of its own common stock for $17 per share. The journal entry to record the buy back on July 1 would be a debit to_____ for_____ and a credit to_____ for_______. On September 2nd, they resold 500 shares for $20 per share. The journal entry to record the September 2nd resale would include...
Norris Company has the following capital structure: Common stock, $2 par, 200,000 shares issued and outstanding...
Norris Company has the following capital structure: Common stock, $2 par, 200,000 shares issued and outstanding On October 1, 2020, the company declared a 50% common stock dividend when the market price of the common stock was $10 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Norris Company would record: A. A debit to Retained Earnings for $200,000 B. A credit to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT