On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10 par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the declaration of the dividend would include:

On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10 par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the declaration of the dividend would include:

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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On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10
par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the
declaration of the dividend would include:
O a credit of $2300 to Cash Dividends.
O a debit of $20500 to Common Stock.
O a credit of $20500 to Dividends Payable.
O a note in the financial statements that dividends of $4 per share are in arrears on preferred stock for 2021.
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