Cash Dividends
At December 31, 2020, Woodstock Corp. has the following shares outstanding (all no par value):
200,000 common shares................................................................. $ 1,275,000
$5 preferred, 7,200 shares............................................................... $ 600,000
The preferred shares are cumulative and participating up to an additional 4%.
Dividends have not been paid since December 31, 2017.
Woodstock now wishes to declare a total cash dividend of $320,000.
Instructions
Prepare the entry for the dividend declaration, separating the dividend into the common and preferred portions. Show all calculations.
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