1.Preferred Stock Issuance and Cash Dividends

XYZ Company issues 10,000 shares of $50 par value, 8% cumulative Preferred Stock. All shares issued are outstanding. The Company declares a cash dividend and has enough cash on hand to pay the Preferred Stock dividend. Prepare journal entries for the following:

The issuance of the stock if a total of $100 per share was received from the initial shareholders.

The entry to record the dividend payable on the Declaration Date.