Weaver Corporation had the following stock issued and outstanding at January 1, 2016: 1. 150,000 shares of

Question:

Weaver Corporation had the following stock issued and outstanding at January 1, 2016:

1. 150,000 shares of $1 par common stock.

2. 15,000 shares of $100 par, 6 percent, noncumulative preferred stock.

On June 10, Weaver Corporation declared the annual cash dividend on its 15,000 shares of preferred stock and a $0.50 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20.

Required

a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders.

b. Prepare general journal entries to record the declaration and payment of the cash dividends (be sure to date your entries).

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...