Can someone help me with this problem? I would greatly appeciated it. Thanks On

Question

Can someone help me with this problem? I would greatly appeciated it.

Thanks

On January 1, 2012. Eves Company issued 1,100 shares of 4%, s70 par value, preferred stock for $106 000. The board of directors declared dividends on December 30, 2012. Eves paid the dividends on January 30, 2013. What journal entries are necessary to record these transactions? Prepare all the necessary journal entries to record the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) First are the joumal entry to record the issuance of the stock January 1. 2012 Now, prepare the journal entry to record the declaration of the dividends. Do not record the entry for payment of the dividends. We will do that in next step Account December 30, 2012 Finally, prepare the journal entry to record the payment of the dividends. Account January 30, 2013

Explanation / Answer

Please note the following journal entries -

Please note all values are in $.

in case of any clarification required please comment.

S.No. Account Dr. Cr. 1 Bank A/c Dr. 106000 To 4% Preferred stock 77000 To paid-in capital in excess of par -preferred stock 29000 (Being Preferred stock issued) 2 Preferred dividend A/c Dr. 3080 To Preferred dividend payable A/c 3080 (Being Dividend declared/becomes payable) 3 Preferred Dividend payable A/c dr. 3080 To bank A/c 3080 (Being dividend paid)

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