Acc280 Financial Accounting: E14-2 Perez Corporation was organized on January 1, 2009

Acc280 Financial Accounting

E14-2
Perez Corporation was organized on January 1, 2009. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2009, $6,000, 2010, $12,000, and 2011, $28,000.

a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and not cumulative. (If answer is zero, please enter 0. Do not leave any fields blank.)
b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. (If answer is zero, please enter 0. Do not leave any fields blank.)
c. Journalize the declaration of the cash dividend at December 31, 2011, under previous question above.
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