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Multiple choice question

CALCULATOR PRINTER VERSION BACK NEXT Multiple Choice Question 103 SheridanCompany is authorized to issue 10000 shares of 1000096, $100 par value preferred stock and 458000 shares of no-par common stock with a stated value of $1 per share. If Sheridan issues 5000 shares of preferred stock for land with an asking price of $569000 and a market value of $542000, which of the following would be the journal entry for Sheridan to record? O Land O Land O Land 542000 Preferred Stock 542000 500000 Preferred Stock 500000 569000 500000 Preferred Stock 69000 Paid-in Capital in Excess of Par-Preferred 542000 Land 500000 42000 Preferred Stock Paid-in Capital in Excess of Par-Preferred ORen Show Work Click if you would like to Show Work for this question: LINK TO TEXT Question Attempts: O of 1 used SAVE FOR LATERSUBMI

Answer 1

103)

Journal entry:

Land 569000

Preferred Stock 500000

Paid-in Capital in Excess of Par- Preferred 69000

104)

Answer is $106000

Explanation:

Total dividend declared = $265000

Dividend paid to Preferred stock holders = 26500*$100*6% = $159000

Dividend paid to Common stock holders = Total amount of dividend paid - Dividend paid to Preferred stock holders

= $265000 - $159000 = $106000