Masters Inc. Partial Balance Sheet December 31, 2020 Shareholders' Equity Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued $100,000 Common shares, unlimited number of shares authorized, 100,000 shares issued 350,000 Total contributed capital 450,000 Retained earnings 170,000 Total shareholders' equity $620,000 Assume that the preferred shares are not cumulative and that no dividends have been declared in 2017, 2018, and 2019. Prepare the journal entry to record the declaration and payment of a dividend in the total amount of $85,000 on December 3, 2020. Use separate dividends payable accounts for preferred and common shares
Masters Inc.
Partial
December 31, 2020
Shareholders' Equity
Contributed Capital:
20,000 shares issued $100,000
Common shares, unlimited number of shares authorized,
100,000 shares issued 350,000
Total contributed capital 450,000
Total shareholders' equity $620,000
Assume that the preferred shares are not cumulative and that no dividends have been declared in 2017, 2018, and 2019.
Prepare the
Use separate dividends payable accounts for preferred and common shares
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