Reference no: EM133166844

Question - The Knudsen Corporation, LLC was organized on the 1st. January 2016.

During its first year of operations, the corporation issued 2,000 shares of $50 par value of preferred stock and 100,000 shares of $10 par value of common stock.

As of December 31, the corporation declared the following dividends paid in cash in current currency:

2016, US$5,000

2017, $12,000

2018, $28,000.

Required -

1- Show the dividend allocation for each class or type of stock, assuming the preferred stock dividend is 6% and is non-cumulative.

2- Show the dividend allocation for each class or type of stock, assuming the preferred stock dividend is 7% and is non-cumulative.

3- File the corresponding records in the 'Journal' that reflect the dividends of the preferred shares as of December 31 under part (b).