Question

# Hodge Corporation issued 117,000 shares of \$18 par value, cumulative, 8% preferred stock on January 1,...

Hodge Corporation issued 117,000 shares of \$18 par value, cumulative, 8% preferred stock on January 1, 2014, for \$2,682,000. In December 2016, Hodge declared its first dividend of \$833,300.

Prepare Hodge’s journal entry to record the issuance of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation
Debit
Credit

SHOW LIST OF ACCOUNTS

If the preferred stock is not cumulative, how much of the \$833,300 would be paid to common stockholders?

Common Stock Dividends
\$

SHOW LIST OF ACCOUNTS

If the preferred stock is cumulative, how much of the \$833,300 would be paid to common stockholders?

Common Stock Dividends
\$

Prepare Hodge’s journal entry to record the issuance of the preferred stock.

 Cash \$2,682,000 preferred stock ( 117000 * 18 ) 2106000 Additional Paid up capital - preferred stock 576000

If the preferred stock is not cumulative, how much of the \$833,300 would be paid to common stockholders?

First dividend will be paid to preferred stockholders :- 2106000 * 8 % = \$ 168480

Remaining will be distributed as Common Stock Dividends = 833300 - 168480 = \$ 664820

If the preferred stock is cumulative, how much of the \$833,300 would be paid to common stockholders?

First dividend will be paid to preferred stockholders :- 2106000 * 8 % * 3 years ( since there is arrear for 2 years ) = \$ 505440

Remaining will be distributed as Common Stock Dividends = 833300 - 505440 = \$ 327860

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Hello, could you provide an original example of a security flaw or vulnerability related to strings....
• Let f(x)=5−log(x+1), g(x)=x2−2x−4 and k(x)=5/(x−4). (a) Find (fog)(x)(fog)(x) and its domain using the interval notation. (b)...
• List the main load transfer mechanisms in pile foundation and comment about the optimal spacing of...
• An athlete swings a 6.50-kg ball horizontally on the end of a rope. The ball moves...
• 1. Observation research must be systematic, not casual or haphazard, in its design. True or False...
• "Thinking as skill". Dr. Edward de Bono gave Lateral Thinking its name and developed techniques for...