Pearland Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preferred stock has a $100 par value, a 5% dividend rate, and is non-cumulative. On October 31, 2013, the company declares dividends of $0.25 per share for common stock and $5.00 per share for preferred stock. Please provide the journal entry for the declaration of dividends.
$$\begin{array} { | l | l | l | }
\hline \quad\quad\quad\quad\quad& \quad\quad&\quad\quad \
\hline & & \\hline & & \
\hline
\end{array}$$

Question

Pearland Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preferred stock has a $100 par value, a 5% dividend rate, and is non-cumulative. On October 31, 2013, the company declares dividends of $0.25 per share for common stock and $5.00 per share for preferred stock. Please provide the journal entry for the declaration of dividends.
 $$\begin{array} { | l | l | l | } 
\hline \quad\quad\quad\quad\quad& \quad\quad&\quad\quad \
\hline & & \\hline & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Pearland Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preferred stock has a $100 par value, a 5% dividend rate, and is non-cumulative. On October 31, 2013, the company declares dividends of $0.25 per share for common stock and $5.00 per share for preferred stock. Please provide the journal entry for the declaration of dividends.
 $$\begin{array} { | l | l | l | } 
\hline \quad\quad\quad\quad\quad& \quad\quad&\quad\quad \
\hline & & \\hline & & \
\hline
\end{array}$$

Pearland Company Has 50,000 Shares of Common Stock Outstanding and 2,000