Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 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 Sunshine Corp. declared the annual dividend on the preferred stock with 8,000 shares of the preferred stock having been issued. Sunshine Corp. is not declaring a dividend on the Common Stock.
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 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 Sunshine Corp. declared the annual dividend on the preferred stock with 8,000 shares of the preferred stock having been issued. Sunshine Corp. is not declaring a dividend on the Common Stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5
JOURNAL page 32
|
date |
description |
p.ref. |
debit |
CREDIT |
|
Dec. 1 |
(1) |
|
? |
|
|
|
(2) |
|
|
? |
Group of answer choices
Cash Dividend debited for the amount of $40,000
Cash Dividend debited for the amount of $200,000
Cash Dividends Payable debited for $40,000
Cash Dividends Payable debited for $200,000
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