Chapter 6
Corporations: Contributed Capital and Dividends
273
b) Calculate the total amount of annual dividend payable to preferred shareholders.
c) Calculate the average issuance price per common share.
d) Calculate the amount due to preferred shareholders if the company last declared
dividends in 2012.
e) Suppose that the company declared to pay $25,000,000 as dividend on December 31,
2016 and paid dividends on January 10, 2017. Prepare journal entries to record the
declaration and payment of dividends assuming the company uses the cash dividends
method.
Date
Account Title and Explanation
Debit
Credit
