HorizonHorizon

Communications has the following stockholders' equity on

DecemberDecember

3131,

20162016:

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(Click on the icon to view the stockholders' equity)

Stockholders' Equity

Paid-In Capital:

Preferred Stock4%, $11 Par Value; 150,000 shares

authorized, 22,000 shares issued and outstanding

$242,000

Common Stock$4 Par Value; 575,000 shares

authorized, 350,000 shares issued and outstanding

1,400,000

Paid-In Capital in Excess of ParCommon

1,050,000

Total Paid-In Capital

2,692,000

Retained Earnings

220,000

Total Stockholders' Equity

$2,912,000

Requirements

1.	Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 20162016 and 20172017 if total dividends are $ 7 comma 680$7,680 in 20162016 and $ 49 comma 000$49,000 in 20172017. Assume no changes in preferred stock and common stock in 20172017.
2.	Record the journal entries for 20162016, assuming that HorizonHorizon Communications declared the dividend on December 1 for stockholders of record on December 10. HorizonHorizon Communications paid the dividend on December 20.

Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for

20162016

and

20172017

if total dividends are

$ 7 comma 680$7,680

in

20162016

and

$ 49 comma 000$49,000

in

20172017.

Assume no changes in preferred stock and common stock in

20172017.

(Assume all preferred dividends have been paid prior to

20162016.

Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.)

HorizonHorizon's

20162016

dividend would be divided between preferred and common stockholders in this manner:

Total Dividend2016		$7,680
Dividend to preferred stockholders:
Dividend in arrears	$0
Current year dividend	9,680
Total dividend to preferred stockholders		(7,680)
Dividend to common stockholders		$0

HorizonHorizon's

20172017

dividend would be divided between preferred and common stockholders in this manner:

Total Dividend2017
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders