Cash DividendsSand Corporation has the following shares outstanding: 10,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the 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 Debit Credit a. Answer Answer Answer Dividends payable - Preferred stock Answer Answer Answer Answer Answer To record declaration of cash dividend. b. Answer Answer Answer Dividends payable - Common stock Answer Answer Answer Answer Answer To record payment of dividends.
Cash DividendsSand Corporation has the following shares outstanding: 10,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the 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 Debit Credit a. Answer Answer Answer Dividends payable - Preferred stock Answer Answer Answer Answer Answer To record declaration of cash dividend. b. Answer Answer Answer Dividends payable - Common stock Answer Answer Answer Answer Answer To record payment of dividends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cash Dividends
Sand Corporation has the following shares outstanding: 10,000 shares of $40 par value, ten percent
a. Prepare the
b. Prepare the journal entry for the payment of the cash dividends.
| General Journal | |||
|---|---|---|---|
| Ref. | Description | Debit | Credit |
| a. | Answer | Answer | Answer |
| Dividends payable - Preferred stock | Answer | Answer | |
| Answer | Answer | Answer | |
| To record declaration of cash dividend. | |||
| b. | Answer | Answer | Answer |
| Dividends payable - Common stock | Answer | Answer | |
| Answer | Answer | Answer | |
| To record payment of dividends. |
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