During 20B, Washington Corporation made the following journal entry to record the declaration and payment of a cash dividend:
The total values of common and preferred shares outstanding were $70,000 and $40,000, respectively. No dividends were declared or paid during 20A. There are 1,000 common treasury shares.
(a) If the preferred shares are noncumulative, the current dividend rate on the preferred shares was
________%.
(b) If the preferred shares are cumulative, the current dividend rate on the preferred shares was
________%.

Question

During 20B, Washington Corporation made the following journal entry to record the declaration and payment of a cash dividend:
  The total values of common and preferred shares outstanding were $70,000 and $40,000, respectively. No dividends were declared or paid during 20A. There are 1,000 common treasury shares.
(a) If the preferred shares are noncumulative, the current dividend rate on the preferred shares was
________%.
(b) If the preferred shares are cumulative, the current dividend rate on the preferred shares was
________%.

Quizplus · Accepted Answer

The Answer of During 20B, Washington Corporation made the following journal entry to record the declaration and payment of a cash dividend:
  The total values of common and preferred shares outstanding were $70,000 and $40,000, respectively. No dividends were declared or paid during 20A. There are 1,000 common treasury shares.
(a) If the preferred shares are noncumulative, the current dividend rate on the preferred shares was
________%.
(b) If the preferred shares are cumulative, the current dividend rate on the preferred shares was
________%.

During 20B, Washington Corporation Made the Following Journal Entry to Record