Metlock Corporation issued 108,000 shares of $18 par value, cumulative, 9% preferred stock on January 1, 2021, for $2,530,000. In December 2023, Metlock declared its first dividend of $840,000.

(a)

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Prepare Metlocks 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Enter an account title	Enter a debit amount	Enter a credit amount
Enter an account title	Enter a debit amount	Enter a credit amount
Enter an account title	Enter a debit amount	Enter a credit amount

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Solution

List of Accounts

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(b)

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If the preferred stock is not cumulative, how much of the $840,000 would be paid to common stockholders?

Common Stock Dividends

$Enter the common stock dividends in dollars