Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account on Dec. 1 that should be recorded in the Description column of the Journal item (1) as the account to be debited and the amount assuming that Smart Corp. declared the annual dividend on the preferred stock with 4,000 shares of the preferred stock having been issued with the date of payment of the dividend to be Dec. 31. Sunshine Corp. is not declaring a dividend on the Common Stock. DATE DESCRIPTION PREF DEBIT CREDIT Dec. 31 (1) ? ? (2)
Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account on Dec. 1 that should be recorded in the Description column of the Journal item (1) as the account to be debited and the amount assuming that Smart Corp. declared the annual dividend on the preferred stock with 4,000 shares of the preferred stock having been issued with the date of payment of the dividend to be Dec. 31. Sunshine Corp. is not declaring a dividend on the Common Stock. DATE DESCRIPTION PREF DEBIT CREDIT Dec. 31 (1) ? ? (2)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5
|
DATE |
DESCRIPTION |
PREF |
DEBIT |
CREDIT |
|
Dec. 31 |
(1) ? |
|
? |
|
|
|
(2) |
|
|
|
Transcribed Image Text:Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred
stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account on
Dec. 1 that should be recorded in the Description column of the Journal item (1) as the
account to be debited and the amount assuming that Smart Corp. declared the
annual dividend on the preferred stock with 4,000 shares of the preferred stock
having been issued with the date of payment of the dividend to be Dec. 31. Sunshine
Corp. is not declaring a dividend on the Common Stock.
DATE
DESCRIPTION
PREF
DEBIT
CREDIT
Dec. 31
(1) ?
?
(2)
Cash Dividend debited for the amount of $20,000
Cash debited for the amount of $20,000
Cash Dividend Payable debited for $20,000
Common Stock debited for $200,000
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