1. Prepare the journal entry to record Tamas Companys issuance of 5,400 shares of $100 par value, 6% cumulative preferred stock for $104 cash per share. 2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

• Record the issue of $100 par value preferred stock for $104 cash per share.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

Par Value per Preferred Share	Dividend Rate		Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
		%