Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock and 2,000 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with a 6% dividend rate. 2018 was the first profitable year of the company in which it declared a total cash dividend of $34,000 on December 31, payable on January 20, 2019. The total amount of cash dividends that will be paid to preferred shareholders is: * $2,400 $12,000 $15,000 $34,000 None of the above

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Chapter1: Financial Statements And Business Decisions
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ll alfa 3G
10:17 am
" Required
Wissam Company was established on
January 1, 2017. The Company issued
10,000 shares of common stock and
2,000 shares of preferred stock on that
date. The preferred shares are cumulative,
$100 par, with a 6% dividend rate. 2018
was the first profitable year of the
company in which it declared a total cash
dividend of $34,000 on December 31,
payable on January 20, 2019.
The total amount of cash dividends that will
be paid to preferred shareholders is:
*
$2,400
$12,000
$15,000
$34,000
None of the above
The totalamount cof cash dividends that will
Transcribed Image Text:ll alfa 3G 10:17 am " Required Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock and 2,000 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with a 6% dividend rate. 2018 was the first profitable year of the company in which it declared a total cash dividend of $34,000 on December 31, payable on January 20, 2019. The total amount of cash dividends that will be paid to preferred shareholders is: * $2,400 $12,000 $15,000 $34,000 None of the above The totalamount cof cash dividends that will
ll alfa 3G
10:18 am
The total amount of cash dividends that will
be paid to common shareholders is: *
$22,000
$20,000
$10,000
$0
None of the above
The entry recorded on December 31, 2018
is: *
Debit Cash and Credit Dividends of $34,000
Debit Cash Dividends and Credit Dividends
Payable of $24,000
Debit Cash Dividends and Credit Dividend
Payable of $34,000
Debit Cash Dividends and Credit Dividends
Payable of $12,000
O None of the above
Transcribed Image Text:ll alfa 3G 10:18 am The total amount of cash dividends that will be paid to common shareholders is: * $22,000 $20,000 $10,000 $0 None of the above The entry recorded on December 31, 2018 is: * Debit Cash and Credit Dividends of $34,000 Debit Cash Dividends and Credit Dividends Payable of $24,000 Debit Cash Dividends and Credit Dividend Payable of $34,000 Debit Cash Dividends and Credit Dividends Payable of $12,000 O None of the above
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