Cr. Common stock 100,000 Cr. Paid in capital in excess of par 3,000

When a company pays (think of the journal entry) a previously declared dividend: Stockholders' equity decreases. Liabilities decrease. Assets decrease. Liabilities decrease and assets decrease. QUESTION 21 Dividends in arrears on cumulative preferred stock should be recorded as a current liability until they are paid. never have to be paid, even if common dividends are paid. enable the preferred stockholders to share equally in corporate earnings with the common stockholders. should be disclosed in the notes to the financial statements. QUESTION 22 Entity H issued 1,000 shares of $100 par preferred stock at $103 per share. Which is the correct journal entry? o Dr. Cash 103,000 Cr. Preferred stock Cr. Paid in capital in excess of par 100,000 3,000 Dr. Cash 103,000 Cr. Preferred stock 103,000 Dr. Cash 103,000 Cr. Bonds payable Cr. Premium on bonds payable 100,000 3,000 Dr. Cash 103,000