If the preferred stock is cumulative, how much of the $$720,000$ would be paid to common stockholders?

Common Stock Dividends

Concord Corporation issued $113,000$ shares of $$19$ par value, cumulative, $7\%$ preferred stock on January $1,2021,$ for $$2,630,000.$ In December $2023,$ Concord declared its first dividend of $$720,000.$

$($a$)$

Correct Answer

Your answer is correct.

Prepare Concord's journal entry to record the issuance of the preferred stock. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

Debit

$2630000$

Preferred Stock

Paid$-$in Capital in Excess of Par$-$Preferred Stock

Credit

$2630000$

$483000$

eTextbook and Media

Solution