Reference no: EM13480452

Knudsen Corporation was organized on January 1, 2013. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2013, $5,000; 2014, $12,000; and 2015, $28,000.
   
Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and non cumulative.
       
2013
       
2014
       
2015
Allocation to preferred stock         $         $         $
Allocation to common stock         $         $         $

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Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative.
    
2013
       
2014
       
2015
Allocation to preferred stock         $         $         $
Allocation to common stock         $         $         $

SHOW LIST OF ACCOUNTS
LINK TO TEXT
   
Journalize the declaration of the cash dividend at December 31, 2015, under part (b). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
   
Debit
Credit
Dec. 31