Question
The stockholders' equity section of Echota Corporation at December 31, 2016, included the following: 5% preferred stock, $100 par value, cumulative, 10,000 shares authorized, 8,000
The stockholders' equity section of Echota Corporation at December 31, 2016, included the following:
5% preferred stock, $100 par value, cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding | $800,000 | |
Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding | $2,000,000 |
Dividends were not declared on the preferred stock in 2016 and are in arrears. On September 15, 2017, the board of directors of Echota Corporation declared dividends on the preferred stock for 2016 and 2017, to stockholders of record on October 1, 2017, payable on October 15, 2017. On November 1, 2017, the board of directors declared a $.75 per share dividend on the common stock, payable November 30, 2017, to stockholders of record on November 15, 2017. Prepare the journal entries that should be made by Echota Corporation on the dates indicated below:
September 15, 2017 | November 1, 2017 |
October 1, 2017 | November 15, 2017 |
October 15, 2017 | November 30, 2017 |
(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
please include all answers
Date Account Titles and Explanation Debit Credit 10/15/17 11/30/17Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started