Del Mare Inc. earned net income of $210,000 during the year ended December 31, 2012. On December 15, 2012, Del Mare Inc. declared the annual cash dividend on its 3% preferred stock (total par value, $170,000) and a $0.80 per share cash dividend on its common stock (95,000 shares outstanding). Del Mare Inc. then paid the dividends on January 4, 2013.
Required:
Journalize for Del Mare Inc.
a. Declaring the cash dividends on December 15, 2012
b. Paying the cash dividends on January 4, 2013.