Question
ABC Corporation has the following accounts and transactions in fiscal year 2020. Investment in KLM Company Bonds $ 35,000 Dividends Payable: Preferred $ 10,000 Dividends
ABC Corporation has the following accounts and transactions in fiscal year 2020.
Investment in KLM Company Bonds $ 35,000
Dividends Payable: Preferred $ 10,000
Dividends Payable: Common $ 100,000
Preferred Stock, 14%, at $100 par $ 300,000
Common Stock, at $10 par $ 800,000
Additional paid-in-capital on preferred on stock $ 90,000
Additional paid-in-capital on common stock $ 500,000
Retained Earnings $ 600,000
ABC Corp. has the following transactions occurred in 2020:
a. On March 2nd paid the semiannual dividends declared on January 2nd, 2020.
b. On April 10th declared a property dividend, payable to common shareholders on May 6th in KLM Company bonds being held to maturity. The bonds have a book value of $35,000 have a current market value of $40,000.
c. On May 6th paid the property dividend.
d. On June 7th declared a $7 per share semiannual cash dividend on preferred stock and a $2 per share semiannual dividend on common stock to be paid on July 18th .
Please make the journal entries to record each transaction above a through d for ABC Corporation.
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