1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value,...

Question:

1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value, 7% cumulative preferred stock for $102 cash per share.
2. Assuming the facts in part 1, if Tamas 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...