The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. If Winters uses a separate dividend account for each type of stock, which of the following would be included in the journal entry to record the declaration of the 12% Preferred stock dividend?
a. a debit to 12% Preferred Cash Dividend for $180.
b. a debit to Dividend Expense for $180.
c. a debit to Dividends Payable for $180.
d. a debit to Cash for $180.

Question

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. If Winters uses a separate dividend account for each type of stock, which of the following would be included in the journal entry to record the declaration of the 12% Preferred stock dividend? 
a. a debit to 12% Preferred Cash Dividend for $180.
b. a debit to Dividend Expense for $180.
c. a debit to Dividends Payable for $180.
d. a debit to Cash for $180.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. If Winters uses a separate dividend account for each type of stock, which of the following would be included in the journal entry to record the declaration of the 12% Preferred stock dividend? 
a. a debit to 12% Preferred Cash Dividend for $180.
b. a debit to Dividend Expense for $180.
c. a debit to Dividends Payable for $180.
d. a debit to Cash for $180.

The Shareholders' Equity Section of Winters Company Contained the Following