Question

Cash Dividends At December 31, 2020, Woodstock Corp. has the following shares outstanding (all no par...

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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