Exercise 5

hard Ltd. issues 5,000 100 par value preference shares for cash at 118 per share. Journalize the issuance of the preference shares.

Prepare entries for issuance of preference shares.

Exercise 6

Greenwood Enterprises has 80,000 ordinary shares outstanding. It declares a 1 per share cash dividend on November 1 to shareholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.

Prepare all entries for a cash dividend