9I 11.11 polints Bogscraft Company has outstanding 60,000 shares of $10 par valu

Question

9I 11.11 polints Bogscraft Company has outstanding 60,000 shares of $10 par value common stock and 25,000 shares of $20 par value preferred stock (8 percent). On February 1, the board of directors voted in favor of an 8 percent cash dividend on the preferred stock. The cash dividends were paid on March 15. The dlosed its books at its fiscal year-end, June 30. company Prepare joumal entries to record the events on (a) February 1, (b) March 15, and (c) June 30 is required for a transactionlevent, select "No Journal Entry Required in the first account fiold.) Required: no entry View transaction list Journal entry worksheet Record the declaration of a cash dividend of 8 percent to the 25,000 shares of $20 par value preferred stock outstanding. Note: Enter debits before credits. Date General Journal Debit Credit February 01 Record entry Clear entry View general Journal acBook Air esc 20 FI F2 F3 F4 FS

Explanation / Answer

Journal entry :

date accounts & explanation debit credit Feb 1 Preferred dividend a/c (25000*20*8%) 40000       Preferred dividend payable a/c 40000 (To record dividend declaration) Mar 15 Preferred dividend payable a/c 40000        Cash a/c 40000 (To record dividend paid) June 30 Retained earnings a/c 40000       Preferred dividend a/c 40000 (To record close of dividend account)

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