Cash Dividends The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017, appeared as follows Preferred stock, $100 par, 8 , 2,000 shares issued and outstanding $200,000 Common stock, $10 par, 5,000 shares issued and outstanding 50,000 Additional paid in capital 300,000 Total contributed capital $550,000 Retained earnings 400,000 Total stockholders equity $950,000 The notes that accompany the financial statements indicate that Jackson has not paid dividends for the two years prior to 2017 On July 1, 2017, Jackson declares a dividend of $100,000 to be paid to preferred and common stockholders on August 1 Required 1 Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming that the preferred stock is noncumulative, nonparticipating stock Amount of Dividends Preferred stock $ Common stock $ 2 Identify and analyze the effect of the transactions on July 1 and August 1, 2017 July 1 Activity Accounts Statement(s) How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income August 1 Activity Accounts Statement(s) How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income 3 Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming instead that the preferred stock is cumulative, nonparticipating stock Amount of Dividends Preferred stock $ Common stock $

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Cash Dividends The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017, appeared as follows: Preferred stock, $100 par, 8%, 2,000

Cash Dividends

The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017, appeared as follows:

Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding	$200,000
Common stock, $10 par, 5,000 shares issued and outstanding	50,000
Additional paid-in capital	300,000
Total contributed capital	$550,000
Retained earnings	400,000
Total stockholders equity	$950,000

The notes that accompany the financial statements indicate that Jackson has not paid dividends for the two years prior to 2017. On July 1, 2017, Jackson declares a dividend of $100,000 to be paid to preferred and common stockholders on August 1.

Required:

1. Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming that the preferred stock is noncumulative, nonparticipating stock.

	Amount of Dividends
Preferred stock	$
Common stock	$

2. Identify and analyze the effect of the transactions on July 1 and August 1, 2017.

July 1:

Activity
Accounts
Statement(s)

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Balance Sheet

Income Statement

Stockholders'

Net

Assets

Liabilities

Equity

Revenues

Expenses

Income

August 1:

Activity
Accounts
Statement(s)