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Question: Accounting for cash dividends Frenchroast Company earned net income of $95,000 during the year ended December 31, 2016. On December 15, Frenchroast declared the annual cash dividend on its 2% preferred stock (par value, $128,000) and a $0.75 per share cash dividend on its common stock (65,000 shares). Frenchroast then paid the dividends on January 4, 2017.
Requirements: 1. Journalize for Frenchroast the entry declaring the cash dividends on December 15, 2016.
2. Journalize for Frenchroast the entry paying the cash dividends on January 4, 2017.
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