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Cash Dividends Bernard Corporation has the following shares outstanding: 8.000 shares of 350 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The comm retained earnings. At year-end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. T company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends. b. Prepare the journal entry for the payment of the cash dividends, General Journal Ref. Description Dividends Payable Common Stock To record declaration of dividend on preferred stock andcommon stock Dividends Payable Common Stock To record payment of dividends on preferred and common stocks 4 Debit Credit

Cash Dividends Bernard Corporation has the following shares outstanding: 8.000 shares of 350 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The comm retained earnings. At year-end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. T company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends. b. Prepare the journal entry for the payment of the cash dividends, General Journal Ref. Description Dividends Payable Common Stock To record declaration of dividend on preferred stock andcommon stock Dividends Payable Common Stock To record payment of dividends on preferred and common stocks 4 Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash Dividends Bernard Corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The comm retained earnings. At year-end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. T company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends b. Prepare the journal entry for the payment of the cash dividends, General Journal Ref. D. Description D Dividends Payable Common Stock To record declaration of dividend on preferred stock andcommon stock Dividends Payable-Common Stock To record payment of dividends on preferred and common stocks 1 Debit Credit
Transcribed Image Text:Cash Dividends Bernard Corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The comm retained earnings. At year-end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. T company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends b. Prepare the journal entry for the payment of the cash dividends, General Journal Ref. D. Description D Dividends Payable Common Stock To record declaration of dividend on preferred stock andcommon stock Dividends Payable-Common Stock To record payment of dividends on preferred and common stocks 1 Debit Credit
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