Question 14 On December 31, 2013, Stock, Inc. has 3,000 shares of 6% $100 par va

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Question 14 On December 31, 2013, Stock, Inc. has 3,000 shares of 6% $100 par value cumulative preferred stock and 45,000 shares of $10 par value common stock outstanding. On December 31, 2013, the directors declare a $15,000 cash dividend. The entry to record the declaration of the dividend would include: a credit of $3,000 to Cash Dividends. a note in the financial statements that dividends of $3 per share are in arrears on preferred stock for 2012. a debit of $15,000 to Common Stock. a credit of $15,000 to Dividends Payable.

Explanation / Answer

a credit of $15,000 to Dividends Payable

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