Seacrest Company has 10,000 shares of cumulative preferred 2% stock, $50 par and

Question

Seacrest Company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends:

Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

$

Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart of Accounts for exact wording of account titles.

Issued for cash 15,000 shares of preferred 1% stock, $10 par at $12 .

The declaration, record, and payment dates in connection with a cash dividend of $659,000 on a corporation’s common stock are June 15, August 10, and September 15.

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Olde Wine Corporation has 265,500 shares of $30 par common stock outstanding. On February 15, Olde Wine Corporation declared a 1% stock dividend to be issued May 2 to stockholders of record on March 27. The market price of the stock was $50 per share on February 15.

Journalize the entries required on February 15, March 27, and May 2. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Explanation / Answer

Seacrest Company Year 1 Year 2 Year 3 Amount Distributed $                                          20,000.00 $         5,000.00 $                         30,000.00 Preferred dividend $                                          10,000.00 $         5,000.00 $                         15,000.00 Common dividend $                                          10,000.00 $                         15,000.00 Dividend per share Preferred $                                                    1.00 $                 0.50 $                                    1.50 Common Stock $                                                    0.20 $                      -   $                                    0.30 (A) (B) (C )=(A)*(B) (C )*2% Number of shares Price Per share Amt of Preferred shares Dividend Preferrence Shares 10000 50 500000 10000 Note: In case in any year dividend paid to preferred stock is less than 10000, it would be paid in the next year First amount distributed to preferred stock and balance to Common Stock Mountain Realty Inc Date Particular Amt (Dr) Amt (Cr) 15-Jun Cash Dividend $    659,000.00    To Cash Dividend Payable $                       659,000.00 15-Sep Cash Dividend Payable $    659,000.00     To Cash $                       659,000.00 Olde Wine Corporation Date Particular Amt (Dr) Amt (Cr) 15-Feb Stock Dividend=(265500*1%*50) $    132,750.00    To Stock Dividend distributable=(265500*1%*30) $                         79,650.00    To Paid in Capital excess of par-Common Stock(265500*1%*20) $                         53,100.00 2-May Stock Dividend distributable $      79,650.00     To Common Stock $                         79,650.00

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