Gratto Corporation earned net income of $85,000 during the year ended December 31, 2016 On December 15, Gratto Corporation declared the annual cash dividend on its 5,000 $3 00 preferred shares and a $0 60 per share cash dividend on its 50,000 common shares Gratto Corporation then paid the dividends...

General Journal DATE 2016 ACCOUNT TITLES AND EXPLANATIONS POST REF DEBIT ...

Gratto Corporation earned net income of $85,000 during the year ended December 31, 2016. On December 15,

Question:

Gratto earned net income of $85,000 during the year ended December 31, 2016. On December 15, Gratto declared the annual cash on its 5,000 $3.00 preferred shares and a $0.60 per share cash on its 50,000 common shares. Gratto then paid the dividends on January 4, 2017.
Journalize for Gratto Declaring the cash dividends on December 15, 2016
2. Paying the cash dividends on January 4, 2017
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...