Ch. 8 #4

Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1.The issuance of common stock and preferred stock on January 1, 2016.

2.The declaration of dividends on December 28, 2017.

3.The payment of dividends on February 12, 2018.

Record stock issuances.

Record the declaration of dividends.

Record the payment of dividends.

Date

General Journal

Debit

Credit

January 01, 2016

*Enter debits before credits

Record the declaration of dividends.

Record the payment of dividends.

Date

General Journal

Debit

Credit

December 28, 2017

*Enter debits before credits

Record the payment of dividends.

Date

General Journal

Debit

Credit

February 12, 2018

*Enter debits before credits

b. Of the total amount of dividends declared during 2017, how much will be received by preferred shareholders?