Question

The following elements of stockholders' equity are from the balance sheet of Sander Marketing Corp. of December 31, 2017 (Click on the loon to view the data) Sandler paid no preferred dividends in 2017. Read the requirements Requirement 1. Compute the dividends to the preferred and common shareholders for 2018 if total dividends are $160,000 and assuming the preferred stock is roncumulative Assume no changes in preferred and common stock in 2018. (Complete all input boxes. Enter "O" for any 2010 amounts.) Sander's 2018 dividend would be divided between preferred and common stockholders in this manner Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders Dividend to common stockholders Enter any number in the edit fields and then click Check Answer

Answer 1

1)

Total dividend -2018		160000
Dividend to preferred stockholders
Dividend in arrears	0
Current year dividend (120000*8%)	9600
Total dividend to preferred stockholders		9600
Dividend to common stockholders		150400

2)

Date	Account title	Debit	credit
1 July 2018	Cash Dividend -Preferred stock	9600
	Cash Dividend -common stock	150400
	Cash dividend payable		160000
15 July 2018	No entry on record date
31 July 2018	Cash dividend payable	160000
	cash		160000