a. Prepare the journal entry to record Tamasine Companys issuance of 5,000 shares of $100 par value

Question:

a. Prepare the journal entry to record Tamasine Company’s issuance of 5,000 shares of $100 7% cumulative preferred stock for $ 102 cash per share.
b. Assuming the facts in part 1, if Tamasine declares a year- end cash what is the amount of paid to preferred shareholders? (Assume no dividends in arrears.)

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...