The shareholders' equity section of Karr Corporation at December 31, 2001 included the following: $6 preferred shares, no par value, cumulative, 10,000 shares authorized, 8,000 shares issued................................ $ 800,000 Common shares, no par value, 250,000 shares authorized, 200,000 shares issued.............................................................................................. $2,000,000 Dividends were not declared on the preferred shares in 2001 and are in arrears. On September 15, 2002, the board of directors of Karr Corporation declared dividends on the preferred shares for 2001 and 2002, to shareholders of record on October 1, 2002, payable on October 15, 2002. On November 1, 2002, the board of directors declared a $2 per share dividend on the common shares, payable November 30, 2002, to shareholders of record on November 15, 2002. Instructions Prepare the journal entries that should be made by Karr Corporation on the dates indicated below: September 15, 2002 November 1, 2002 October 1, 2002 November 15, 2002 October 15, 2002 November 30, 2002 ** If no entry is require, include the date and no entry required
The shareholders' equity section of Karr Corporation at December 31, 2001 included the following:
$6
10,000 shares authorized, 8,000 shares issued................................ $ 800,000
Common shares, no par value, 250,000 shares authorized,
200,000 shares issued.............................................................................................. $2,000,000
Dividends were not declared on the preferred shares in 2001 and are in arrears.
On September 15, 2002, the board of directors of Karr Corporation declared dividends on the preferred shares for 2001 and 2002, to shareholders of record on October 1, 2002, payable on October 15, 2002.
On November 1, 2002, the board of directors declared a $2 per share dividend on the common shares, payable November 30, 2002, to shareholders of record on November 15, 2002.
Instructions
Prepare the
September 15, 2002 November 1, 2002
October 1, 2002 November 15, 2002
October 15, 2002 November 30, 2002
** If no entry is require, include the date and no entry required
Step by step
Solved in 2 steps
