Question

B-Wireless Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Wireless to issue 60,000 shares of 6%, $100 par value cumulative preferred stock and 150,000 shares of $4 par value common stock. During the first month, B-Wireless completed the following transactions: i (Click the icon to view the transactions.) Read the requirements. Oct. 10: Declared a $15,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Date Accounts and Explanation Debit Credit Oct. 10 Oct. 25: Paid the cash dividend. Choose from any list or enter any number in the input fields and then continue to the next question.

i need help with both dates

Answer 1

Georgia authorize B-wirelen, 60,000 shares of 6% $100 par Value of cumulative preference sharee 150,000 shares of $ 4 pas value of common Stock Oct - 10. Dividend declared a $15,000 cash. Sol: payable for preference Shares Dividend Total paidup Value = 60,000 x $ 100 $ 6,000,000 Dividend @ 6% = $6,000,000 86% - $360,000. Dividend payable for common stock Totoy pad up Value = 150,000 x $ 4 $ 600,000 Dividend @ 6%. $600,000 x 6% - $ 36,000 Since the dividend declared is $ 15,000 Since the dividend payable for preference Sharce is $360,000, the amount of $ 15,000 is paid for preference Shares.

DY Dividend bate | Particulars Loct to cash paid as (dividend and Payable ate for preference Sharts & Amount i particulars parte Amount Sood By Balance 360,000 oct 10 Oct Bg Balance , als as do 4 345,oof 36000d 360000 Dr Date oct -as Pividend particular To cash paid payable ale for common stoce u Amount Date Amout particulars I - Loct By Balance 6/d 3600 out 25 to Balance OD 36,000) VIDIOT COORDO $ 360000 $ $ boot