HANDOUT 11-3\ PREFERRED DIVIDENDS\ On January 1, Year 1, Garden State issued 10,000 shares of

$10

par,

7%

cumulative preferred stock for

$19

per share.\ a. Prepare the journal entry required to record the January 1 stock issuance.\ \\\\table[[Date,Accounts,Debit,Credit],[,Cash

(10,000\\\\times $19)

,190,000,],[,Preferred Stock

(10,000\\\\times $10)

,,100,000],[,\\\\table[[Additional Paid-In Capital

PREFERRED DIVIDENDS On January 1, Year 1, Garden State issued 10,000 shares of $10 par, 7% cumulative preferred stock for $19 per share. a. Prepare the journal entry required to record the January 1 stock issuance. b. Determine the total amount of annual dividends that Garden State would pay to its preferred stockholders, if declared. c. Par value of $100,000(10,000$10/ share )7% dividend rate =$7,000 b. Complete the following table to demonstrate how Garden State's dividends would be allocated between its preferred and common stockholders