At January 1, 2012, Lance Link Corporation had 100,000 shares of $1 par common stock and 1,000 shares of $100 par, 6%, cumulative preferred stock outstanding.
Express did not pay dividends in 2012 or 2013. In December 2014, the board of directors declared a $45,000 cash dividend to be paid on January 31.
Required:
Compute the total dividend to be paid to the preferred shareholders.
Compute the total dividend to be paid to the common shareholders
Show the December 31 journal entry to record the declaration of dividends.