Reference no: EM132887677
Preferred stock 5% $100 par (300,000 shares authorized; 150,000 shares issued) $2,000,000
Paid in Capital in Excess of par Preferred Stock 300,000
Common stock $25 par value (2,000,000 shares authorized; 1,000,000 issued) 18,000,000
Paid in Capital in Excess of par Common Stock 2,500,000
Retained Earnings 60,000,000
Problem 1: Prepare the following two journal entries:
A) Declared cash dividends of $5.00 for the preferred stock an $.50 per share on common stock
B) Paid the cash dividends
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