Financial Accounting

Fraud Ltd$.$ has two types of stock: Preferred Stock and Common

Stock.

Preferred Stock has $50,000$ shares authorized, $11,000$ shares

outstanding, a Par Value of $$75\mathrm{.}00,$

a rate of $5\mathrm{.}5\%,$ and the shares are cumulative.

Common Stock has $75,000$ shares authorized, $29,000$ shares

outstanding and a Par Value of $$15\mathrm{.}00$ per share.

Last year, the Board of Directors had no cash to declare a dividend;

the Preferred Stock

is in arrears. This year, the Board declared a cash dividend of

$$100,000.$

Calculate the dollar amount owed to Preferred and Common

Stock. $($round to two decimal places.$)$

Calculate the dividend per share for Preferred and Common Stock.

$($round to two decimal places.$)$

This question refers to the question above about Fraud Ltd and the

cash dividend of $$100,000.$

Prepare the journal entry to record for Fraud Ltd$.$

$($declaring the dividend.$)$