Northern Communications has the following stockholders equity: Requirements 1. Assuming the preferred stock is cumulative, compute the

Northern Communications has the following stockholders’ equity:

Requirements
1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2014 and 2015 if total dividends are $ 12,200 in 2014 and $ 55,000 in 2015.
2. Record the journal entries for 2014, assuming that Northern Communications declared the dividend on December 1 for stockholders of record on December 10. Northern Communications paid the dividend on December20.

Transcribed Image Text:

Stodkholders' Equity Paid-In Capital: Preferred Stock-5%. S 11 Par Value; 150,000 shares authonized, 20,000 shares issued and outstanding Common Stock-$3 Par Value, 575,000 shares 220,000 authornized, 400,000 shares issued and outstanding Paid-In Capital in Excess of Par. .Common Total Paid-In Capital 1,200,000 1,000,000 2,420,000 190,000 5 2,610,000 Retained Eamings Total Stockholders' Equity