Question
The shareholders' equity section of Simpson Limited at December 31, 2018 included the following: $4 preferred shares, cumulative, 20,000 shares authorized; 5,000 shares issued.................................................. $500,000
The shareholders' equity section of Simpson Limited at December 31, 2018 included the following:
$4 preferred shares, cumulative,
20,000 shares authorized; 5,000 shares issued.................................................. $500,000
Common shares, 300,000 shares authorized,
100,000 shares issued......................................................................................... $1,000,000
Dividends were not declared on the preferred shares and are in arrears since 2016.
On September 15, 2019, the board of directors of Simpson Limited declared dividends on the preferred shares for 2016, 2017, and 2018, to shareholders of record on October 1, 2019, payable on October 15, 2019.
On November 1, 2019, the board of directors declared a $1.50 per share dividend on the common shares, payable November 30, 2019, to shareholders of record on November 15, 2019.
Instructions
Prepare the journal entries that should be made by Simpson Limited in 2019 on the dates indicated below:
September 15November 1
October 1November 15
October 15November 30
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