On October 14, the board of directors of Celery Cede Corp. voted to declare the annual preferred

Question:

On October 14, the board of directors of Celery Cede Corp. voted to declare the annual preferred share dividend to shareholders of record on November 1, payable on November 21. The company is authorized to issue 100,000, $5.25 noncumulative preferred shares; 25,000 have been issued. Prepare the required entries on each of these dates.

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...