Reference no: EM132985708

Radio Shack stores, included the following stockholders' equity on its year-end balance sheet at December 31, 19X8, with all dollar amounts, except par value per share, in millions:

Stockholders' Equity
($ Millions)

Preferred stock, 6%, cumulative $ 200

Common stock-par value $1 per share; 250,000,000 shares authorized, 139,000,000 shares issued 139

Paid-in capital in excess of par-common 150

Retained earnings 1,693

Required

Problem 1: Assume that preferred dividends are in arrears for 19X7 and 19X8. Record the declaration of a $50 million cash dividend on December 30, 19X9. Use separate Dividends Payable accounts for Preferred and Common. An explanation is not required.