Cash DividendsBernard Corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year‑end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. Three weeks later, the company pays the dividends.a. Prepare the journal entry for the declaration of the cash dividends.b. Prepare the journal entry for the payment of the cash dividends.General JournalRef.DescriptionDebitCredita.AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCashAnswerAnswer AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCashAnswerAnswer Dividends Payable - Common StockAnswerAnswer To record declaration of dividend on preferred stock andcommon stock. b.AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCashAnswerAnswer Dividends Payable - Common StockAnswerAnswer AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCashAnswerAnswer To record payment of dividends on preferred and common stocks.

a) Total preference dividend = 8,000 shares * $3 per share = $24,000 Total common stock dividend =…

Answered: Bernard Corporation has the following…

College Accounting, Chapters 1-27

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ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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Cash Dividends

Bernard Corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year‑end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. Three weeks later, the company pays the dividends.

a. Prepare the journal entry for the declaration of the cash dividends.
b. Prepare the journal entry for the payment of the cash dividends.

General Journal
Ref.	Description	Debit	Credit
a.	AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCash	Answer	Answer
	AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCash	Answer	Answer
	Dividends Payable - Common Stock	Answer	Answer
	To record declaration of dividend on preferred stock andcommon stock.
b.	AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCash	Answer	Answer
	Dividends Payable - Common Stock	Answer	Answer
	AnswerCash DividendsDividends Payable - Preferred StockDividends Payable - Common StockCash	Answer	Answer
	To record payment of dividends on preferred and common stocks.

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