1. Your Corporation bought $650, 000 of equipment using an installment loan. The note provides for 4% annual interest and equal annual payments of interest and principal of $58,462 on December 31 of each year. Calculate the interest payment for YEAR 3.
2. Your Corporation had 350,000 shares of $10 par value common stock authorized, 175,000 shares issued and

25,000 shares of treasury stock when the board of directors declared a cash dividend of $1.75 per share. At the time of the dividend, the market value per share was $50. Give the journal entry that records the dividend. You may not need all the lines. (JOURNAL ENTRY)

3. Your company has 8,000 shares of $75 par value, 5% cumulative preferred stock and 10,000 shares of $5 par value common stock outstanding. The company has never paid dividends. The preferred stock was issued four years ago. What is the break down between preferred and common stockholders when $195,000 is paid out in the fourth year?

Preferred Stock

Common Stock