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Question - Lobo Corporation was organized on january 1, 2014. During its first year, the corporation issued 60,000 shares of $12 par value preferred stock and 400,000 shares of $3 par value common stock. No dividends were declared in 2014, but dividends were declared on December 31 for the next three years as follows:
Year - Dividend
2015 - 45,000
2016 - 55,000
2017 - 65,000
Instructions -
(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative.
(b) Journalize the declaration of the cash dividend at December 31, 2017.
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