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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)

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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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) 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
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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