Common Stock - par $1, 10,000 shares = $10,000 Preffered stock 10% (par $1, 100,000 shares)...

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Question

Common Stock - par $1, 10,000 shares = $10,000 Preffered stock 10% (par $1, 100,000 shares)...

Common Stock - par $1, 10,000 shares = $10,000

Preffered stock 10% (par $1, 100,000 shares) = $100,000

Paid in Capital in Excess of Par $500,000

What is the journal entry if a $400,00 dividend is declared, payable in the following year?

business accounting

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Answer 1

Answer #1

Journal entry:

Date	Account title & Explanation	Debit	Credit
Year 1	Retained Earnings	$400,00
	Dividend Payable		$400,00
	(Dividend Declared in current year)

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Answer 2

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