Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2018: 12% preferred stock, cumulative, $50 par (10,000 shares issued and

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2018: 12% preferred stock, cumulative, $50 par (10,000 shares issued and outstanding) $500,000 Common stock, $10 par (100,000 shares issued and outstanding) 1,000,000 Additional paid-in capital: common 1,000,000 Retained earnings 3,750,000 Total stockholders' equity $6,250,000 Annapolis engaged in the following dividend transactions during 2018, 2019, and 2020: 2018: Dividends are in arrears for 2016 and 2017. On December 1, 2018, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a $1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2018. 2019: On December 1, 2019, the annual cash dividend on the preferred stock was declared. The dividend was paid on December 31, 2019. On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2020. The market price per share for the common stock on December 10, 2019, was $28. 2020: On January 25, 2020, the stock dividend declared on December 10, 2019, was issued. On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2021. In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2021. The market price per share for the common stock on December 1, 2020, was $23. No other stock transactions took place during 2018, 2019, or 2020. Required: Prepare the entries to record the dividend transactions for 2018, 2019, and 2020. (Do not record any transactions for 2021.)

Help filling in the missing journal entries: the boxes left blank thank you

image text in transcribedimage text in transcribed

Prepare the entries to record the dividend transactions for 2019. Prepare the entries to record the dividends transactions for 2020. Prepare two entries for preferred and common stock dividends declared in December 1 transactions. GENERAL JOURNAL

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

Auditing A Risk Based Approach

Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg

12th Edition

035772187X, 978-0357721872

More Books

Students also viewed these Accounting questions

Question

1 What are the dimensions used in Hofstedes model of culture?

Answered: 1 week ago