Question

The stockholders' equity section of Mia Corporation at December 31, 2021, included the following: 6% preferred...

The stockholders' equity section of Mia Corporation at December 31, 2021, included the following:

6% preferred stock, $120 par value, cumulative,

10,000 shares authorized, 8,000 shares issued and outstanding
$ 960,000


Common stock, $10 par value, 300,000 shares authorized,

200,000 shares issued and outstanding
32,000,000

Dividends were not declared on the preferred stock in 2019 and are in arrears.

On September 15, 2020, the board of directors of Mia Corporation declared $50,000 cash dividends to stockholders of record on October 1, 2020, payable on October 15, 2020.

On September 15, 2021, the board of directors of Mia Corporation declared $150,000 cash dividends to stockholders of record on October 1, 2021, payable on October 15, 2021.


Instructions

a. Show the allocation of the cash dividends for 2020, and 2021to each class of stock, assuming the preferred stock dividend is 6% and not cumulative.

b. Show the allocation of the cash dividends for 2020, and 2021to each class of stock, assuming the preferred stock dividend is 6% and cumulative.

c. Prepare the journal entries that should be made by Mia Corporation on the dates indicated below:

1
September 15, 2021

2
October 1, 2021

3
October 15, 2020

Business   Accounting   
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