A) On May 20, the board of directors for Auction.com declared a cash dividend of...
70.2K
Verified Solution
Link Copied!
Question
Accounting
A) On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 517,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date.
1. Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 517,000 shares of stock outstanding.
2. Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 517,000 shares of stock outstanding.
3. Record the entry on the date of payment for the cash dividend.
4. Record the entry to close the dividend account to retained earnings.
B) Colliers, Inc., has 115,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $3 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $800,000 this year.
What amount will go to preferred stockholders?
How much will be available for common stock dividends?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
