E13-28

= Homework: Exercise 13-28 Question 1, E13-28 Part 1 of 4 The following elements of stockholders' equity are from the balance sheet of Sacchetti Marketing Corp. at December 31, 2017: (Click on the icon to view the data.) Sacchetti paid no preferred dividends in 2017. Read the requirements. Requirement 1. Compute the dividends to the preferred and common shareholders for 2018 if total dividends are $175,000 and (Complete all input boxes. Enter "0" for any zero amounts.) Sacchetti's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Data Tab Current year dividend Total dividend to preferred stockholders Dividend to common stockholders Paid-In Ca Preferr author dividends are $175,000 and assuming the preferred stock is noncumulative. Assume no changes in preferred and common stock i anner: no change a Table Stockholders' Equity aid-In Capital: Preferred Stock-8%, $2 Par Value; 140,000 shares authorized, 50,000 shares issued and outstanding Common Stock-$0.10 Par Value; 11,250,000 shares authorized, 10,500,000 shares issued and outstanding $ 100,000 1,050,000 Print Done Requirements 1. Compute the dividends to the preferred and common shareholders for 2018 if total dividends are $175,000 and assuming the preferred stock is noncumulative. Assume no changes in preferred and common stock in 2018. 2. Record the journal entries for 2018 assuming that Sacchetti Marketing Corp. declared the dividends on July 1 for stockholders of record on July 15. Sacchetti paid the dividends on July 31. Print Done