Instructions a. Prepare journal entries in general journal form to record the ab
ID: 2590216 • Letter: I
Question
Instructions a. Prepare journal entries in general journal form to record the above transactions. Include entries at December 31 to close the Income Summary account and the Dividends account. Prepare the stockholders' equity section of the Sharnes Communications, Inc., balance sheet at December 31. b. The year-end balance sheet of Ft. Smith Products includes the following stockholders' equity section (with certain details omitted): LO11-4, LOII-5 PROBLEM 11.5A Analysis of an Equity Section of a Balance Sheet Stockholders' equity: 7½% cumulative preferred stock, $100 par value, $2,400,000 Common stock, $2 par value, 900,000 shares authorized . Additional paid-in capital: common stock 900,000 8,325,000 2,595,000 . .$14.220,000 Total stockholders' lders' equity.. Instructions From this information, compute answers to the following questions: a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends paid to preferred stockholders?Explanation / Answer
a) Preferred stock issued = (2400000/100) = 24000 shares
b) Annual dividend paid to preferred stockholders = 2400000*7.5%= 180000