Sweet Acacia Limited has the following information available regarding its share capital at December 31, 2020:...
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Sweet Acacia Limited has the following information available regarding its share capital at December 31, 2020: Preferred shares, $3.50 cumulative, 18,300 shares issued $915,000 Preferred shares, $4.50 noncumulative, 13,400 shares issued 670,000 Common shares, 319,000 shares issued 1,595,000 The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 30, 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021. (a) Your answer is correct. How much will be paid to each class of shares? Cumulative preferred shares $ 192,150 Noncumulative preferred shares $ 60,300 Common shares $ 159,500 %24 %24 Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Oct. 30 Cash Dividends - Common Cash Dividends - Preferred Dividends Payable (To record declaration of dividend.) Nov. 16 No Entry No Entry Dec. 1 Dividends Payable Cash (To record payment of dividend.) Sweet Acacia Limited has the following information available regarding its share capital at December 31, 2020: Preferred shares, $3.50 cumulative, 18,300 shares issued $915,000 Preferred shares, $4.50 noncumulative, 13,400 shares issued 670,000 Common shares, 319,000 shares issued 1,595,000 The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 30, 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021. (a) Your answer is correct. How much will be paid to each class of shares? Cumulative preferred shares $ 192,150 Noncumulative preferred shares $ 60,300 Common shares $ 159,500 %24 %24 Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Oct. 30 Cash Dividends - Common Cash Dividends - Preferred Dividends Payable (To record declaration of dividend.) Nov. 16 No Entry No Entry Dec. 1 Dividends Payable Cash (To record payment of dividend.)
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Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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