COMMON AND PREFERRED CASH DIVIDENDS Wakui Company currently has 100,000 shares of $1 par common stock outstanding

Question:

COMMON AND PREFERRED CASH DIVIDENDS Wakui Company currently has 100,000 shares of $1 par common stock outstanding and 1,000 shares of $100 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of $0.40 per share on common stock to shareholders of record on August 1, payable on August 5.

On July 15, the board of directors declared a semiannual dividend of $10 per share on preferred stock to shareholders of record on August 5, payable on August 10. Prepare journal entries for the declaration and payment of the common and preferred stock cash dividends.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...