Reference no: EM132821738

ABC Company was founded on Nov 1, 2016, & issued 50,000 shares of common stock with par value of $8, for $346,000. Later, on Nov 16, 2016, the company issued 13,000 shares of $15 par, 6% cumulative preferred stock for $296,00. They did not declare any dividends for this year.

• April 15, 2017, ABC Company repurchased 400 shares of its preferred stock at $17 per share. On Nov 4, 2017, it declared cash dividends of $17,300 for shareholders of record on Nov 12, 2017. On Nov 19, 2017, they paid the cash dividends.
• Aug 21, 2018, ABC Company declared cash dividends of 24,600, for shareholders of record on Aug 30, 2018. On Sept 2, 2018, they paid the cash dividends

Question A) Prepare complete journal entries for 2016 and 2017.

Question B) Determine the total amount of dividends preferred shareholders & common shareholders will have received through Dec 31, 2018. Afterward, determine the total amount of dividends preferred shareholders & common shareholders would have received through December 31, 2018. Assuming that the preferred stock was non-cumulative, how much more in dividends did common shareholders receive?