Nathan Products equity includes 6.5 percent, $150 par preferred stock. There are 80,000 shares authorized and 30,000

Question:

Nathan Products’ equity includes 6.5 percent, $150 par preferred stock. There are 80,000 shares authorized and 30,000 shares outstanding. Assume that Nathan Products declares and pays preferred dividends quarterly.

Required:
1. Prepare the journal entry to record declaration of one quarterly dividend.
2. Prepare the journal entry to record payment of the one quarterly dividend.