The following elements of stockholders’ equity are from the balance sheet of Smith Marketing Corp. at December 31, 2023:
paid no preferred dividends in 2023.
Data Table
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Stockholders’ Equity
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Paid-In Capital:
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Preferred Stock—4%, $2 Par Value; 90,000 shares authorized, 85,000 shares issued and outstanding
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$170,000
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|---|---|
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Common Stock—$0.10 Par Value; 11,000,000 shares authorized, 10,250,000 shares issued and outstanding
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1,025,000
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Requirements
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1.
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Compute the dividends to the preferred and common shareholders for
2024
if total dividends are $200,000
and assuming the preferred stock is noncumulative. Assume no changes in preferred and common stock in 2024.
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2.
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Record the journal entries for
2024
assuming that Smith
Marketing Corp. declared the dividends on July
1 for stockholders of record on July
15. Smith
paid the dividends on July
31. |
Requirement 1. Compute the dividends to the preferred and common shareholders for
2024
if total dividends are
$200,000
and assuming the preferred stock is noncumulative. Assume no changes in preferred and common stock in
2024.
(Complete all input boxes. Enter “0” for any zero amounts.)
Smith’s
2024
dividend would be divided between preferred and common stockholders in this manner:
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Total Dividend—2024
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Dividend to preferred stockholders:
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Dividend in arrears
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Current year dividend
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Total dividend to preferred stockholders
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Dividend to common stockholders
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