Starting balance: $2 preferred shares, non-cumulative, unlimited number : 0 Issu
ID: 2410223 • Letter: S
Question
Starting balance: $2 preferred shares, non-cumulative, unlimited number : 0Issued 20,000 preferred shares for $50 per share on Jan 2. On March 10 declared quaterly cash dividend to preferred shareholders of record March 22, payable on April 2.
Complete Journal Entries
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Starting balance: $2 preferred shares, non-cumulative, unlimited number : 0
Issued 20,000 preferred shares for $50 per share on Jan 2. On March 10 declared quaterly cash dividend to preferred shareholders of record March 22, payable on April 2.
Complete Journal Entries
Thank you!
Issued 20,000 preferred shares for $50 per share on Jan 2. On March 10 declared quaterly cash dividend to preferred shareholders of record March 22, payable on April 2.
Complete Journal Entries
Thank you!
Explanation / Answer
Date Accounts Title Dr Cr 2-Jan Cash $1,000,000 Preferred shares (20000*50) $1,000,000 (being preferred stock issued) 10-Mar Cash Dividend 10000 Preferred Dividend Payable 10000 (20000*$2/4) (being quartely preferred dividend declared) 22-Mar No entry is required 2-Apr Preferred Dividend Payable 10000 Cash 10000 (being dividend paid) Note if Account tilte does not have option of Preferred dividend payable please take account name as Dividend payable If any doubt please comment. If satisfied you can rate
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