Lemon Inc. has the following information regarding its preferred and common stoc

Question

Lemon Inc. has the following information regarding its preferred and common stock: As of December 31, 2013, Lemon was 3 years in arrears on its dividends. During 2014, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: 1. What was the total amount of dividends declared and paid during 2014? Total dividends declared and paid $ Hide 2. During 2014, what journal entry was made at the date of declaration? (Record liability for dividends)

Explanation / Answer

Date Account head Debit Credit 2014 Preferred Dividend Expense xxx Preferred Dividend Payable xxx 2014 Preferred Dividend Payable xxx Cash xxx 2014 Equity Dividend Expense xxx Equity Dividend payable xxx 2014 Equity Dividend payable xxx Cash xxx

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