Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with this question. Western Communications has the following stockholders' equity on December 31, 2018: (Click on the icon to view the stockholders'

Please help me with this question.

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed

Western Communications has the following stockholders' equity on December 31, 2018: (Click on the icon to view the stockholders' equity) Read the requirements. Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,560 in 2018 and $55,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. 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.) Western's 2018 dividend would be divided between preferred and common stockholders in this manner: Western's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend-2018 12,560 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders (12,560) Dividend to common stockholders - Data Table Stockholders' Equity Paid-In Capital: Preferred Stock7%, $ 8 Par Value; 150,000 shares authorized, 26,000 shares issued and outstanding Common Stock-$3 Par Value; 575,000 shares authorized, 330,000 shares issued and outstanding 208,000 990,000 Paid-In Capital in Excess of ParCommon 1,155,000 Total Paid-In Capital 2,353,000 140,000 Retained Earnings $ 2,493,000 Total Stockholders' Equity Requirements 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,560 in 2018 and $55,000 in 2019. Assume no changes in preferred stock and common stock in 2019. 2. Record the journal entries for 2018, assuming that Western Communications declared the dividend on December 1 for stockholders of record on December 10. Western Communications paid the dividend on December 20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland

5th Edition

1119989485, 9781119989486

More Books

Students also viewed these Accounting questions