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Question 1

Laurel Designs has 1,100 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2022. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2022 or 2023. The company plans to pay total dividends of $13,000 in 2024. How much of the $13,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders?

	Preferred dividends in arrears for 2022 and 2023 Preferred dividends for 2024 Remaining dividends to common stockholders Total dividends $0

Question 2

Divine Apparel has 3,700 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.

Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Record the entry on the date of record.

	Date General Journal Debit Credit October 15

Record the payment of cash dividends.

	Date General Journal Debit Credit October 31

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