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Part 1: On December 10, the Board of Directors of Win Corporation declares the f

ID: 2503579 • Letter: P

Question

Part 1:

On December 10, the Board of Directors of Win Corporation declares the following quarterly cash dividends. The date of record is December 10 and date of payment is January 2.


Instruction:

Post the necessary journal entry.

Part 2:

On November 10, the Board of Directors at Hilton Corporation declared an annual cash dividend of $3 per share on 1000 preferred shares. The dividend payable to preferred stockholders is recorded on November 26 and will be paid on December 10, Memorandum No.115, Check No.149

Instruction:

Post a journal entry for the transaction.

Dividend Per Share Total Dividend Preferred stock, $10 par 10,000 $1.00 $10,000 Common stock, $5 par, 1,00,000 $0.20 $20,000 $30,000

Explanation / Answer

1)Balance Sheet

As on 10 December


Assets Amount

Preferred Stock $10000

Common Stock $20000


---- ----

$30000

---- ----


2)Balance Sheet

As on 10 December

Source Number Value per Unit Total Amount
Preffered Stock 1000 $3 $3000

Pay to preferred stockholders on December 10, Memorandum No.115, Check No.149.