Frenchvanilla Company earned net income of $ 75,000 during the year ended December 31, 2014. On December

Question:

Frenchvanilla Company earned net income of $ 75,000 during the year ended December 31, 2014. On December 15, Frenchvanilla declared the annual cash dividend on its 5% preferred stock (par value, $ 115,000) and a $ 0.50 per share cash dividend on its common stock (55,000 shares). Frenchvanilla then paid the dividends on January 4, 2015.

Requirements

1. Journalize for Frenchvanilla the entry declaring the cash dividends on December 15, 2014.

2. Journalize for Frenchvanilla the entry paying the cash dividends on January 4, 2015.

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...