Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,840 in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) New England's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2018 12,840 Dividend to preferred stockholders: Dividend in arrears 0 Current year dividend 15840 Total dividend to preferred stockholders 12,840 Dividend to common stockholders 0 New England's 2019 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2019 49,000 Dividend to preferred stockholders: Dividend in arrears 3,000 Current year dividend 15,840 Total dividend to preferred stockholders 18840 Dividend to common stockholders 30160 Requirement 2. Record the journal entries for 2018, assuming that New England Communications declared the dividend on December 1 for stockholders of record on December 10. New England Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Dec. 1, 2018: Declared dividend. Date Accounts and Explanation Debit Credit Dec. 1 Dec. 10, 2018: Date of record. Date Accounts and Explanation Debit Credit Dec. 10 Dec. 20, 2018: Paid dividend. Date Accounts and Explanation Debit Credit Dec. 20

Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,840 in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) New England's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2018 12,840 Dividend to preferred stockholders: Dividend in arrears 0 Current year dividend 15840 Total dividend to preferred stockholders 12,840 Dividend to common stockholders 0 New England's 2019 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2019 49,000 Dividend to preferred stockholders: Dividend in arrears 3,000 Current year dividend 15,840 Total dividend to preferred stockholders 18840 Dividend to common stockholders 30160 Requirement 2. Record the journal entries for 2018, assuming that New England Communications declared the dividend on December 1 for stockholders of record on December 10. New England Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Dec. 1, 2018: Declared dividend. Date Accounts and Explanation Debit Credit Dec. 1 Dec. 10, 2018: Date of record. Date Accounts and Explanation Debit Credit Dec. 10 Dec. 20, 2018: Paid dividend. Date Accounts and Explanation Debit Credit Dec. 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.)

New England's

2018

dividend would be divided between preferred and common stockholders in this manner:

Total Dividend—2018		12,840
Dividend to preferred stockholders:
Dividend in arrears	0
Current year dividend	15840
Total dividend to preferred stockholders		12,840
Dividend to common stockholders		0

New England's

2019

dividend would be divided between preferred and common stockholders in this manner:

Total Dividend—2019		49,000
Dividend to preferred stockholders:
Dividend in arrears	3,000
Current year dividend	15,840
Total dividend to preferred stockholders		18840
Dividend to common stockholders		30160

Requirement 2. Record the journal entries for

2018,

assuming that

New England

Communications declared the dividend on December 1 for stockholders of record on December 10.

New England

Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.)

Dec. 1,

2018:

Declared dividend.

Date	Accounts and Explanation	Debit	Credit
Dec. 1

Dec. 10,

2018:

Date of record.

Date	Accounts and Explanation	Debit	Credit
Dec. 10

Dec. 20,

2018:

Paid dividend.

Date	Accounts and Explanation	Debit	Credit
Dec. 20

New England Communications has the following stockholders' equity on December 31, 2018:
(Click on the icon to view the stockholders' equity)
Data Table
Read the requirements.
Date
Accounts and Explanation
Debit
Credit
Stockholders' Equity
Paid-In Capital:
Dec. 1
Preferred Stock-8%, $ 9 Par Value; 150,000 shares
authorized, 22,000 shares issued and outstanding
Common Stock-$2 Par Value; 575,000 shares
authorized, 400,000 shares issued and outstanding
$
198,000
800,000
1,800,000
Paid-In Capital in Excess of Par-Common
Total Paid-In Capital
2,798,000
Dec. 10, 2018: Date of record.
150,000
Retained Earnings
Date
Accounts and Explanation
Debit
Credit
$
2,948,000
Total Stockholders' Equity
Dec. 10
Done.
Activate Windows
Print
Choose from any list or enter any number in the input fields and then continue to the next question.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.