The annual report for Sneer Corporation disclosed that the company declared and

Question

The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $160,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.60 per share. During the current year, Sneer had 1 million common shares authorized; 360,000 shares had been issued, and 154,000 shares were in treasury stock. The opening balance in Retained Earnings was $860,000 and Net Income for the current year was $360,000 Required 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit a(1) Dividends 160,000 Dividends Payable 160,000 a(2) Dividends Payable Cash 160,000 160,000 b(1)Dividends 535,600 Dividends Payable 535,600 4 b(2 Dividends Payable Cash 535,600 535,600

Explanation / Answer

Journal Entry

A single entry for both dividend transaction .if sepearate entry is reacquired then simply pass two entries on for dividend common stock and dividend preferred

Journal Entry

Description Debit Credit Retained earnings 695600 Dividends 695600

A single entry for both dividend transaction .if sepearate entry is reacquired then simply pass two entries on for dividend common stock and dividend preferred

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.