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Note: Enter debits before credits. Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Record the transaction. Date Dec 31 Dividends General Journal 6 Dividends payable ***** Debit 105,000 18 Credit 105,000

Note: Enter debits before credits. Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Record the transaction. Date Dec 31 Dividends General Journal 6 Dividends payable ***** Debit 105,000 18 Credit 105,000

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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oo.17.

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ook int rences Sun Corporation received a charter that authorized the issuance of 90,000 shares of $7 par common stock and 21,000 shares of $125 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 13,500 shares of the $7 par common stock for $9 per share. January 12 Sold 2,100 shares of the 4 percent preferred stock for $135 per share. Sold 18,000 shares of the $7 par common stock for $11 per share. April 5 December 31 During the year, earned $303,700 in cash revenue and paid $241,900 for cash operating expenses. December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. (3 separate entries) Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,150 shares of the $125 par preferred stock for $145 per share. May 5 Purchased 500 shares of the common stock as treasury stock at $14 per share. December 31 During the year, earned $246,300 in cash revenues and paid $177,000 for cash operating expenses. Becember 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common December 31 stock. closed revenue, expense, and dividend accounts to the retained earnings account. (3 separate entries)
Transcribed Image Text:ook int rences Sun Corporation received a charter that authorized the issuance of 90,000 shares of $7 par common stock and 21,000 shares of $125 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 13,500 shares of the $7 par common stock for $9 per share. January 12 Sold 2,100 shares of the 4 percent preferred stock for $135 per share. Sold 18,000 shares of the $7 par common stock for $11 per share. April 5 December 31 During the year, earned $303,700 in cash revenue and paid $241,900 for cash operating expenses. December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. (3 separate entries) Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,150 shares of the $125 par preferred stock for $145 per share. May 5 Purchased 500 shares of the common stock as treasury stock at $14 per share. December 31 During the year, earned $246,300 in cash revenues and paid $177,000 for cash operating expenses. Becember 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common December 31 stock. closed revenue, expense, and dividend accounts to the retained earnings account. (3 separate entries)
< entry 7 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Record the transaction. Note: Enter debits before credits. Date Dec 31 Dividends Record entry 4 General Journal Dividends payable Clear entry 6 ..... Debit 105,000 18 Credit 105,000 View general Journal
Transcribed Image Text:< entry 7 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Record the transaction. Note: Enter debits before credits. Date Dec 31 Dividends Record entry 4 General Journal Dividends payable Clear entry 6 ..... Debit 105,000 18 Credit 105,000 View general Journal
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