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Lake Enterprises has both common and preferred stock. There are 4 5 , 0 0 0 shares of $ 3 par common stock outstanding and

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Lake Enterprises has both common and preferred stock. There are 45,000 shares of $3 par common stock
outstanding and 2,000 shares of $25 par, 7% cumulative preferred stock outstanding. The company did not
pay any dividends last year. On June 1 of this year, the Board of Directors voted to give a $10,500 cash
dividend to stockholders of record by June 15. The dividend would be paid on July 1.
a) Calculate the amount of the dividend to be paid to each class of shareholders.
b) Prepare journal entries to record the declaration and payment of the dividends (Hint: use the Account
List - click to pop open to help you with your journal entries).
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