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Corporation and Paid In capital
FV Company earned net income of $75,000 during the year ended December 31, 2012. On December 15, FV declared the annual cash dividend on its 5% preferred stock (par value, $115,000) and a $0.50 per share cash dividend on its common stock (55,000 shares). FV then paid the dividends on January 4, 2013.
Requirements
Problem 1. Journalize for FV:
Problem 2. Declaring the cash dividends on December 15, 2012.
Problem 3. Paying the cash dividends on January 4, 2013.
Financial Statement Analysis and Preparation
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