Question

1. Prepare the journal entry to record Tamas Company's issuance of 5,400 shares of $100 par value, 6% cumulative preferred stock for $104 cash per share. 2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Tamas Company's issuance of 5,400 shares of $100 par value, 6% cumulative preferred stock for $104 cash per share. View transaction list Journal entry worksheet Record the issue of $100 par value preferred stock for $104 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Answer to Requirement 1.

Trans	General Journal	Debit	Credit
1.	Cash (5,400 * $104)	561,600
	Preferred Stock (5,400 * $100)		540,000
	APIC - Preferred Stock (5,400 * $4)		21,600
	(Record issuance of Preferred Stock)

Answer to Requirement 2.

Par Value per Preferred Stock	Dividend Rate		Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
$100	6	%	$6	5,400	$32,400