Gammon, Inc , declared dividends during the current year as follows The current years cash dividend on the 6 percent, $100 par value preferred stock 100,000 shares were outstanding at the time of the declaration A cash dividend of $0 75 per share on the $10 par value common stock 750,000 shares wer...

Cash dividend on preferred stock 100000 shares x 100 par x 6 600000 Cash divide ...

Gammon, Inc., declared dividends during the current year as follows: The current years cash dividend on

Question:

Gammon, Inc., declared dividends during the current year as follows:
• The current year’s cash on the 6 percent, $100 preferred stock. 100,000 shares were outstanding at the time of the declaration.
• A cash of $0.75 per share on the $10 common stock. 750,000 shares were outstanding at the time of the declaration.
Prepare the general journal entries to record the declaration and payment of these dividends, assuming the declaration is recorded directly to retained earnings.

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...