Exercise 11-5 (Part Level Submission) Hodge Corporation issued 116,000 shares of

Question

Exercise 11-5 (Part Level Submission)

Hodge Corporation issued 116,000 shares of $20 par value, cumulative, 6% preferred stock on January 1, 2016, for $2,610,000. In December 2018, Hodge declared its first dividend of $720,000.

(a)

Account Titles and Explanation

Debit

Credit

Exercise 11-5 (Part Level Submission)

Hodge Corporation issued 116,000 shares of $20 par value, cumulative, 6% preferred stock on January 1, 2016, for $2,610,000. In December 2018, Hodge declared its first dividend of $720,000.

Explanation / Answer

(a)

Account Titles and Explanation Debit Credit Cash $2,610,000   Preferred stock (116,000 x $20) $2,320,000   Additional Paid-in-Capital (Preferred Stock) $290,000

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