Step 1 I was able to solve but i am having trouble solving step 2. I am on my final attempt and i need help, can you please explain what I am doing wrong and how do i get the correct answer? Eastern Communications has the following stockholders' equity on December 31, 2024:E (Click on the icon to view the stockholders' equity)Read the requirementsRequirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2024 and 2025 if total dividends are $7.240 in 2024 and $51,000 in 2025. Assume no changes in preferred stock and common stock in 2025. (Assume all preferreddividends have been paid prior to 2024. 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.)Eastern's 2024 dividend would be divided between preferred and common stockholders in this manner:Data TableTotal Dividend-–2024$7,240Dividend to preferred stockholders:Dividend in arrearsStockholders' Equity9.240Current year dividendPaid-In Capital:Preferred Stock-4%, $11 Par Value; 150,000 sharesauthorized, 21,000 shares issued and outstanding(7,240)Total dividend to preferred stockholders$231,000$Common Stock-$2 Par Value; 575,000 sharesDividend to common stockholdersauthorized, 360,000 shares issued and outstanding720,000Eastern's 2025 dividend would be divided between preferred and common stockholders in this manner:720,000Paid-In Capital in Excess of Par-CommonTotal Dividend-2025$51,000Total Paid-In Capital1,671,000Dividend to preferred stockholders:130,000Retained EarningsDividend in arrears$2,000$1,801,000Total Stockholders' Equity9,240Current year dividendTotal dividend to preferred stockholders(11,240)PrintDone$39,760Dividend to common stockholders Requirement 2. Record the journal entries for 2024, assuming that Eastern Communications declared the dividend on December 1 for stockholders of record on December 10. Eastern Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journalentry 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, 2024: Declared dividend.- XData TableDateAccounts and ExplanationDebitCreditDec. 1Cash Dividends7,240Dividends Payable-Preferred7,240Stockholders' EquityPaid-In Capital:Preferred Stock-4%, $11 Par Value; 150,000 sharesauthorized, 21,000 shares issued and outstanding$231,000Declared a cash dividend.Common Stock-$2 Par Value; 575,000 sharesauthorized, 360,000 shares issued and outstanding720,000Dec. 10, 2024: Date of record.720,000Paid-In Capital in Excess of Par-CommonDateAccounts and ExplanationDebitCreditTotal Paid-In Capital1,671,000Dec. 10Retained Earnings11240130,000Dividends Payable-Preferred51000Retained Earnings$1,801,000Total Stockholders' EquityRecord date of record.PrintDoneChoose from any list or enter any number in the input fields and then click Check Answer.partremainingClear AllFinal Check

There would be not entry for the arrears-in-dividend because this due amount cannot be consider the…

Requirement 2. Record the journal entries for 2024, assuming that Eastern Communications declared the dividend on December 1 for stockholders of record on December 10. Easterm 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, 2024: Declared dividend. O Data Table Date Accounts and Explanation Debit Credit Cash Dividends Dec. 1 7,240 Dividends Payable-Preferred 7,240 Stockholders' Equity Paid-In Capital Preferred Stock-4%, $11 Par Value; 150,000 shares authorized, 21,000 shares issued and outstanding Common Stock-S2 Par Value; 575,000 shares authorized, 360,000 shares issued and outstanding 231,000 | Declared a cash dividend. 720,000 Dec. 10, 2024: Date of record. 720,000 Paid-in Capital in Excess of Par-Common Total Paid-in Capital Date Accounts and Explanation Debit Credit 1,671,000 Dec. 10 Retained Earnings 11240 130,000 Dividends Payable-Preferred 51000 Retained Earnings 1,801,000 Total Stockholders' Equity Record date of record. Print Done Choose from any list or enter any number in the input fields and then click Check Answer.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q