Problem 1 Preferred stock

30000 shares
2%
$50
$30,000

dividend rate
Par value
dividend amount

total dividends Preferencpreferencpreferenc

$20,000 $30,000 $20,000 $10,000
$50,000 $40,000 $40,000
$0
$90,000 $30,000 $30,000
$0

Problem 2
Date
Particulars
10-Apr-10 cash
common stock
(issuance of no-par common stock)

Debit amoCredit amount

800000
800000

15-Apr-10 cash (2,000*$50)

5% preferred stock
(issuance of preferred stock)

100000

1-May-10 cash (2000*$55)

5% preference stock (2000*$50)

110000

100000

100000

paid-in capital in excess of parpreference(2000*$5)

(issuance of preferred stock)

10000

Problem 3
Date

Particulars
1-May Divdends account
Dividends payable
(dividends declared)

Debit amoCredit amount

$25,000
$25,000

15-May No entry on date of record

30-May Dividends payable
Cash
(dividends paid)

$25,000
$25,000

equity dividend
$0
$10,000
$60,000