Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts: 2020 Jan. 10 Paid $11,000 of annual dividends to preferred shareholders. 2021 Jan. 10 Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders. Mar. 1 The preferred shares were converted into common shares. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Jan . 10 (To record preferred share dividend.) Date Account Titles and Explanation Debit Credit 2021 Jan. 10 (To record common and preferred share dividends.) Mar. 1 (To record conversion of shares.) Are there any additional reporting requirements regarding preferred share dividends in either 2020 or 2021? The company needs to disclose dividends in arrears of $ in the notes to the 20202021 financial statemen

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

See similar textbooks

Related questions

Question

Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts:

2020
Jan.	10	Paid $11,000 of annual dividends to preferred shareholders.
2021
Jan.	10	Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders.
Mar.	1	The preferred shares were converted into common shares.

Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2020 Jan . 10

	(To record preferred share dividend.)

Date	Account Titles and Explanation	Debit	Credit
2021 Jan. 10


	(To record common and preferred share dividends.)
Mar. 1

	(To record conversion of shares.)

Are there any additional reporting requirements regarding preferred share dividends in either 2020 or 2021?

The company needs to disclose dividends in arrears of $ in the notes to the 20202021 financial statemen

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.