6 Dividend Transactions (5 points) The RST Company Board of Directors authorized

Question

6 Dividend Transactions (5 points) The RST Company Board of Directors authorized 10,000,000 shares of $2 par common stock and 10,000 shares of $100 par 9% preferred stock There are 1,000,000 shares of common issued and 950,000 shares outstanding. There are 10,000 shares of the preferred stock issued and outstanding. 5) Aug 1, Year 1 the RST Company declared dividends of $.60 per common share, plus dividends on preferred stock payable on Sept 1 to all shareholders of record on Aug 15. Give the entries on the date of declaration, . date of record and e date of payment 1-Aug 15-Aug 1-Sep cct 204 Final Fall 2017 Page 12A

Explanation / Answer

Date Accounts Titles & Explanation Debit ($) Credit ($) 1 - Aug Cash Dividends 57,090,000 Common Stock Dividend Payable (950,000 shares * $60) 57,000,000 Preferred Stock Dividend Payable (10,000 shares * $100 * 9 %) 90,000 15- Aug No entry is required on the date of record 1 - Sep Common Stock Dividend Payable 57,000,000 Preferred Stock Dividend Payable 90,000 Cash 57,090,000

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.