QS 13-11 Preferred stock issuance and dividends LO C2

1. Prepare the journal entry to record Tamas Company's issuance of 5,900 shares of $100 par value, 7% cumulative preferred stock for $105 cash per share.

2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

Prepare the journal entry to record Tamas Company's issuance of 5,900 shares of $100 par value, 7% cumulative preferred stock for $105 cash per share.

Record the issue of $100 par value preferred stock for $105 cash per share.

Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

Par Value per Preferred Share

Dividend Rate %

Dividend per Preferred Share

Number of Preferred Shares

Preferred Dividend