Question

Starting balance: $2 preferred shares, non-cumulative, unlimited number : 0 Issued 20,000 preferred shares for $50...

Starting balance: $2 preferred shares, non-cumulative, unlimited number : 0

Issued 20,000 preferred shares for $50 per share on Jan 2. On March 10 declared quaterly cash dividend to preferred shareholders of record March 22, payable on April 2.

Complete Journal Entries

Thank you!

Homework Answers

Answer #1
Date Accounts Title Dr Cr
2-Jan Cash $1,000,000
Preferred shares (20000*50) $1,000,000
(being preferred stock issued)
10-Mar Cash Dividend 10000
Preferred Dividend Payable 10000
(20000*$2/4)
(being quartely preferred dividend declared)
22-Mar No entry is required
2-Apr Preferred Dividend Payable 10000
Cash 10000
(being dividend paid)
Note if Account tilte does not have option of
Preferred dividend payable please take account name as Dividend payable
If any doubt please comment. If satisfied you can rate
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