Greenwood Corporation earned net income of $90,000 during the year ended December 31, 2016 On December 15, Greenwood declared the annual cash dividend on its 2 preferred stock (15,000 shares with total par value of $ 150,000) and a $0 45 per share cash dividend on its common stock (50,000 shares wi...

Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 2016 Dec ...

Greenwood Corporation earned net income of $90,000 during the year ended December 31, 2016. On December 15,

Question:

Greenwood earned net income of $90,000 during the year ended December 31, 2016. On December 15, Greenwood declared the annual cash on its 2% preferred stock (15,000 shares with total of $ 150,000) and a $0.45 per share cash on its (50,000 shares with total of $500,000). Greenwood then paid the dividends on January 4, 2017.
Journalize the following for Greenwood Declaring the cash dividends on December 15, 2016
b. Paying the cash dividends on January 4, 2017
Did Retained Earnings increase or decrease during 2016? By how much?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...