6: E11-11 (Algo) Recording Dividends and Preparing a Statement of Retained Earnings [LO 11-2, LO 11-3]

Save Et 6 E11-11 (Algo) Recording Dividends and Preparing a Statement of Retained Earnings (LO 11-2, LO 11-3) 167 points The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $150.000 In the current year. It also declared and paid dividends on common stock in the amount of $2,50 per share. During the current year, Sneer had 1 million common shares authorized: 350,000 shares had been issued; and 145,000 shares were in treasury stock. The opening balance in Retained Earnings was $850,000 and Net Income for the current year was $350,000 Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on () preferred and (b) common stock 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31 3. Prepare a journal entry to close the dividends account BOOK * Him Complete this question by entering your answers in the tabs below. Print Required 1 Required Required Heferences Prepare journal entries to record the declaration, and payment of dividends on (a) preferred and (b) common stock. (If no wtry required for a transaction/event, select "No Journal entry Required in the first account fied) View transaction or Journal entry worksheet 3 4 2 Record the declaration of a cash dividend of $150,000 to the preferred stockholders View transaction list Book Journal entry worksheet Hint 2 3 4 > Record the declaration of a cash dividend of $150,000 to the preferred stockholders. Print Note: Enter debits before credits ferences General Journal Debit Credit Transaction a(1) Record entry Clear entry View general Journal Mr. points required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list eBook Journal entry worksheet 2 3 4 Hint Record the payment of the cash dividend to the preferred stockholders. Print Note: Enter debits before credits. References Transaction General Journal Debit Credit a(2) Record entry Clear entry View general journal Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no e required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet