Sara Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value

M N P 0 R S T U Sara Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par valve common stock. At December 31, the comp 2017 2018 2019 Instructions (a Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and not cumulative. () Show the alloeation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b). (d) Explain the difference between cumulative or noncumulative stocks. @@@@ Solution (d) cumulacivestocks noncumulative stocks Solution (a) 2017 2018 Solution (b) 2018 Item 2019 Item 2019 Solution Debit Credit Accounts M N P 0 R S T U Sara Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par valve common stock. At December 31, the comp 2017 2018 2019 Instructions (a Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and not cumulative. () Show the alloeation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b). (d) Explain the difference between cumulative or noncumulative stocks. @@@@ Solution (d) cumulacivestocks noncumulative stocks Solution (a) 2017 2018 Solution (b) 2018 Item 2019 Item 2019 Solution Debit Credit Accounts