Problem 1 - Cool Beans Company has 30,000 shares of 2% cumulative preferred stock of $50 par and 50,000 shares of $50 par common stock. Below are the amounts distributed as dividends.
1. $20,000
2. $50,000
3. $90,000
Please determine the amount of dividends paid to common and preferred stock for each scenario presented above.
Problem 2 - On April, 10 2010, Cougs Company issued for cash 20,000 shares of no-par common stock for $40. On April 15, Cougs issued at par 2000 shares of 5%, $50 par preferred stock for cash. On May 1, Cougs Company issued for cash 2,000 shares of 5%, $50 par preferred stock for $55.
Journalize the entries to record the April 10, April 15 and May 1 transactions
Problem 3 - You have noted that there are 3 important dates associated with a cash dividend of $25,000. These are May 1, May 15 and May 30. Please journalize the preceding transactions.
Reminder: Please submit your solutions to the problems in your Excel document.