Cedar Corporation is authorized to issue 10,000 shares of (6 %, $ 10) par, cumulative preferred stock.

Question:

Cedar Corporation is authorized to issue 10,000 shares of $6 \%, \$ 10$ par, cumulative preferred stock. During 2020 , it sold 2,000 shares of preferred stock for $\$ 25$ per share.

Required

a. Record the entry for the issuance of preferred stock during 2020 .

b. Assume the company is preparing financial statements for the year ended 2023. If the company had not declared or paid dividends in any year to preferred shareholders, what would the company report as dividends in arrears on December 31, 2023?

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Ali Khawaja

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