Novak Corporation issued 104,000 shares of $ 18 par value, cumulative, 9% preferred stock on January 1, 2018, for $ 2,550,000. In December 2020, Novak declared its first dividend of $ 760,000.

Prepare Novaks journal entry to record the issuance of the preferred stock.

If the preferred stock is not cumulative, how much of the $ 760,000 would be paid to common stockholders?

If the preferred stock is cumulative, how much of the $ 760,000 would be paid to common stockholders?

Account Titles and Explanation Debit Credit