Flounder Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued)		$200,000
Common stock, $5 par (102,000 shares authorized, 20,400 shares issued)		102,000
Additional paid-in capital		134,000
Retained earnings		480,000
Total		$916,000

During 2020, Flounder took part in the following transactions concerning stockholders’ equity.

1.		Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019.
2.		Purchased 1,800 shares of its own outstanding common stock for $41 per share. Flounder uses the cost method.
3.		Reissued 700 treasury shares for land valued at $30,200.
4.		Issued 530 shares of preferred stock at $106 per share.
5.		Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $48 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.

Prepare the general entry

Answer rating: 100% (QA)

Date Account Title Debit Credit Calculation 1 Preferred Dividend Payable 20000 200010 ... View the full answer