Chapter 11 Proprietorships, Partnerships, and Corporations

Your Question 2: Custom Masks Inc. had the following stock issued and outstanding Jan 1, Year 1 1. 200,000 shares of $2 par common stock 2. 20,000 shares of $100 par, 5%, non-cumulative preferred stock Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. b. Prepare general journal entries to record the declaration and payment of the cash dividends (be sure to date your entries). Your Question 2: Custom Masks Inc. had the following stock issued and outstanding Jan 1, Year 1 1. 200,000 shares of $2 par common stock 2. 20,000 shares of $100 par, 5%, non-cumulative preferred stock Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. b. Prepare general journal entries to record the declaration and payment of the cash dividends (be sure to date your entries)