journal entry

Required information Preferred stock has a priority (or senior status) relative to common stock in (1) dividends and (2) assets in case of liquidation. Preferred stock usually excludes voting rights. Preferred stockholders usually hold the right to dividend distributions before common stockholders. When preferred stock is cumulative and in arrears, the amount in arrears must be distributed to preferred stockholders before any dividends are distributed to common stockholders. Knowledge Check UI On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. Complete the necessary journal entry by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. Note: Enter debits before credits General Journal Debit Credit Date July 01