QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 85,000 shares of $5 par value, 11% cumulative preferred stock and 305,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Erst did not declare any dividends in the prior year, but it now declares and pays a $150,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend for two years Calculation of proferred dividend: % Total cash dividend To preferred shareholders To common shareholders QS 11-6 Accounting for cash dividends LO P2 Prepare journal entries to record the above transactions for Emerson Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) July 15 Declared a cash dividend payable to common stockholders of $177,000. Aug. 15 Date of record is August 15 for the cash dividend declared on July 15. Aug. 31 Paid the dividend declared on July 15