Timber Ridge Corporation was organized on January 1, 2015. During its first year, the corporation issued...

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Timber Ridge Corporation was organized on January 1, 2015. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2015 - $ 8,000; 2016- $30,000; 2017-$70,000 Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (b) Journalize the declaration of the cash dividend at December 31, 2017. Timber Ridge Corporation was organized on January 1, 2015. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2015 - $ 8,000; 2016- $30,000; 2017-$70,000 Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (b) Journalize the declaration of the cash dividend at December 31, 2017.

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Answer Solution Annual preferred dividends 4000055 10000 Preferred Comm... View the full answer