A corporation has the following capital stock as of December 31, 2021: 8% preferred stock $200 par
Question:
A corporation has the following capital stock as of December 31, 2021:
8% preferred stock
$200 par value
Cumulative
100,000 shares authorized
50,000 shares issued
45,000 shares outstanding.................................................................. $ 9,000,000
Common stock
$10 par value
10,000,000 shares authorized
3,000,000 shares issued
2,500,000 shares outstanding................................................................ $25,000,000
Preferred dividends are in arrears. They received no dividends in 2020 or 2021.
Record the journal entry needed on each day (or leave blank if one is not needed).
January 20th, 2022 – the board declared a cash dividend to pay all owed preferred dividends.
January 30th, 2022 – the company records the current stockholders.
February 19th, 2022 – the dividend is distributed.
June 1st, 2022 – the board of director declares a $1.00 per share dividend on common stock.
June 15th, 2022 – the company records the current stockholders.
July 1st, 2022 – the dividend is distributed.
These are the journal entries that need to be solved above.
Expert Answer:
