Requirement 4. No preferred dividends are in arrears . Journalize the declaration of a $ 700,000 dividend at June 30, 2018 , and the payment of the dividend on July 20 , 2018. Use separate Dividends Payable accounts for preferred and common stock . An explanation is not required. (Record debuts first, then credits. Exclude explanations from any journal entries.) Record the payment of the dividend on July 20, 2018 Record the payment of the dividend on July 20, 2018.DateAccountsDebitCreditJul. 20Dividends Payable-CommonDividends Payable PreferredCash 0 Data TableStockholders' EquityPaid-In Capital:Preferred Stock-8%, ? Par Value; 650,000 sharesauthorized, 260,000 shares issued and outstandingCommon Stock-$1 Par Value; 5,000,000 sharesauthorized, 1,300,000 shares issued and outstanding1,300,0001,300,0002,800,000Paid-In Capital in Excess of Par-CommonTotal Paid-In Capital5,400,00012,300,000Retained Earnings17,700,000Total Stockholders' Equity%24%24

Par value of preferred share = Total paid up capital of Preferred shares / No. of shares issued =…

Answered: No preferred dividends are in arrears .…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 73E: Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000...

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Requirement 4. No preferred dividends are in arrears . Journalize the declaration of a $ 700,000 dividend at June 30, 2018 , and the payment of the dividend on July 20 , 2018. Use separate Dividends Payable accounts for preferred and common stock . An explanation is not required. (Record debuts first, then credits. Exclude explanations from any journal entries.)

Record the payment of the dividend on July 20, 2018

0 Data Table
Stockholders' Equity
Paid-In Capital:
Preferred Stock-8%, ? Par Value; 650,000 shares
authorized, 260,000 shares issued and outstanding
Common Stock-$1 Par Value; 5,000,000 shares
authorized, 1,300,000 shares issued and outstanding
1,300,000
1,300,000
2,800,000
Paid-In Capital in Excess of Par-Common
Total Paid-In Capital
5,400,000
12,300,000
Retained Earnings
17,700,000
Total Stockholders' Equity
%24
%24

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