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Express Corporation had the following stock issued and outstanding at January 1, 2018: 100,000 shares of $1 par common stock 1,000 shares of $100 par,
- Express Corporation had the following stock issued and outstanding at January 1, 2018:
100,000 shares of $1 par common stock
1,000 shares of $100 par, 6%, cumulative preferred stock.
Express did not pay dividends in 2016 or 2017. In December 2018, the board of directors declared a $45,000 dividend to be paid on January 31, 2019.
Required:
- Compute the total dividend to be paid to the preferred shareholders.
- Compute the total dividend to be paid to the common shareholders.
- Show the December 31, 2018 journal entry to record the declaration of dividends.
- Show the January 31, 2019 journal entry to record the payment of dividends.
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