Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 106,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $6,500; 2020, $14,400; and 2021, $29,000. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative. 2019 2020 2021 Allocation to preferred 2$ 6,500 2$ 7,000 2$ 7,000 stock Allocation to common 2$ 2$ 7,400 2$ 22,000 stock
Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 106,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $6,500; 2020, $14,400; and 2021, $29,000. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative. 2019 2020 2021 Allocation to preferred 2$ 6,500 2$ 7,000 2$ 7,000 stock Allocation to common 2$ 2$ 7,400 2$ 22,000 stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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"Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 9% and cumulative."
Transcribed Image Text:Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,000 shares of $50 par value
preferred stock and 106,000 shares of $10 par value common stock. At December 31, the company declared the following cash
dividends: 2019, $6,500; 202O, $14,400; and 2021, $29,000.
Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.
2019
2020
2021
Allocation to preferred
2$
6,500
2$
7,000
2$
7,000
stock
Allocation toO common
7,400
22,000
stock
%24
%24
Transcribed Image Text:Journalize the declaration of the cash dividend at December 31, 2021, under part (b). (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for
the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec.
31
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