Horizon Communications has the following stockholders equity on December 31, 2016: Stockholders' Equity Paid-In Capital: Preferred Stock4%,

Question:

Horizon Communications has the following stockholders’ equity on December 31, 2016:
Stockholders' Equity
Paid-In Capital:
Preferred Stock—4%, $11 Par Value; 150,000 shares authorized, 22,000 shares issued and outstanding.............. $ 242,000
Common Stock—$4 Par Value; 575,000 shares authorized, 350,000 shares issued and outstanding................. 1,400,000
Paid-In Capital in Excess of Par—Common...... 1,050,000
Total Paid-In Capital.............. 2,692,000
Retained Earnings............... 220,000
Total Stockholders' Equity...........$2,912,000
Requirements
1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2016 and 2017 if total dividends are $7,680 in 2016 and $49,000 in 2017. Assume no changes in preferred stock and in 2017.
2. Record the journal entries for 2016, assuming that Horizon Communications declared the on December 1 for stockholders of record on December 10. Horizon Communications paid the on December 20. 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...