Exercise $10-67$

Cash Dividends on Common and Preferred Stock

Lemon Inc. has the following information regarding its preferred and common stock:

Preferred stock, $$30$ par, $12\%$ cumulative; $300,000$ shares authorized; $150,000$ shares issued and outstanding

Common stock, $$2$ par; $2,500,000$ shares authorized; $1,200,000$ shares issued; $1,000,000$ outstanding

As of December $31,2019,$ Lemon was $3$ years in arrears on its dividends. During $2020,$ Lemon declared and paid dividends. As a result, the common stockholder: received dividends of $$0\mathrm{.}45$ per share.

Required:

What was the total amofint of dividends declared and paid during $2020?$

Total dividends declared and paid &

$2.$ During $2020,$ what journal entry was made at the date of declaration?

$$

$$

$$

$($Record liability for dividends$)$