Kiki Company has the following two types of stock: 1. 15,000 shares of 10% cumulative preferred stock

Question:

Kiki Company has the following two types of stock:

1. 15,000 shares of 10% cumulative preferred stock with a $30 par value.

2. 30,000 shares of common stock with a $1 par value.

Kiki Company declared a $75,000 cash dividend. Make the necessary journal entry (or entries) to record this event.

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...